Smart Duniya 25 July 2022

Property purchased on the name of partnership firm and we've to close the firm.

We've made a partnership deed at registrar's office for property business and purchased a 12,000 Sq Feet land. The 7/12 reflects everyone's name with their % share on behalf of the partnership firm's name. Now we want to close the firm and get our names on the 7/12 and remove the firm's name.

Whats the process to close a firm and update the 7/12?

Query: As the firm was registered at registrar's office, Do we need to close firm in-front of registrar or it can be done internally?

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Quick Summary

This discussion addresses the process of closing a partnership firm that owns property. The partners wish to remove the firm's name from the property's 7/12 record and have their individual names reflected with their respective shares. The key question is whether the firm closure needs to be done officially with the registrar or can be handled internally, with guidance suggesting a formal dissolution deed registered with the Registrar of Firms is necessary.

2 Replies

kavksatyanarayana (subregistrar/supdt.(retired)) 25 July 2022

The Dissolution of the partnership deed shall be executed by all the partners and the property how to be divided among the partners shall be mentioned in the dissolution deed. It shall be registered and filed in Form. V before the Registrar of Firms concerned.

Advocate Bhartesh goyal (advocate) 25 July 2022

Yes, deed of disolutution of partnership firm is to be executed as per law which should have been contained dividation of partnership assets among partners.