A friendship may be for life but a Partnership with a friend may or may not be for life. Just like the relationship a Partnership can also end abruptly. However whatever be the reason for the dissolution of a Partnership firm, the partners should ensure that the legal compliance in the dissolution of Partnership should be compiled, so that latter it should not haunt back. AKT Associates helps in mediating and solving the issues arising from the dissolution of the Partnership firm. We ensure that it is done in the least possible cost and time; we do all related compliance so that the partners can get peace of mind from Tax authorities’ notices post dissolutions.
What is the dissolution of the firm?
The partnership is the oldest form of business organization, Maybe as long as human civilization, When two or more like-minded person thinks to start a profitable venture it becomes a Partnership When these terms put down in writing it becomes Partnership deed.
But as said nothing is permanent business relations are also prone to break up and limitations, when the relationship between the partners (Which is known as Partnership) comes to an end the process of recording is called Partnership dissolution.
Documents required for partnership Dissolution
- PAN Card
- Address Proof of firm
- Accounting Information
- Legal Liabilities
- List of secured creditors
- Original partnership deed and all its modified versions
- Address Proof of firm
Types of Partnership dissolutions:
There are certain situations which may lead to partnership dissolution. These may be:
- There is no business activity from quite some time
- Partners are not willing to continue
- The purpose (Like project or work) for which Partnership was formed is completed
- The Partnership has become bankrupt
- The Partnership has defunct due to non-filing of compliance documents
- There is only one partner remained after the death of other partner and no other partners are added.
- By court order
Well, all this is a bookish point mentioned above as per our experience partnership close due to a misunderstanding between them. Another reason for the greediness of one partner. All goes well initially, things go wrong when the distribution of profit comes. Generally, partner blames each other not for working and hence don’t want to share profit.
AKT Associates mediate in such cases because in such conditions some partners or one of them generally don’t co-operate making the dissolution procedure difficult.
If you are also a partner of any such firm, contact us to guide you properly in this front.
Procedure for Dissolution of Partnership:
Without going into legality we are providing herewith general steps which should be taken to dissolve a Partnership.
Step 1:- Draft deed of dissolution and suspension of business.
Step2:- Finalization of Accounts till the date of dissolution.
Step 3:- Cancellation and surrender of all registration and certification.
Step 4: Filing the deed to the registrar of firms
Step 5: Public notice by Newspaper advertisement if required
After completing all the procedure business will be considered as closed and partners will be stand relieved from any future liability
Seems too complicated? Take the expert services
Consult with our experts to get your Partnership wind up done without much hassle
what could be the legal steps and documents required