Dissolution of Partnership FirmGet Started
How to Dissolve a Partnership Firm?
It is the easiest way to dissolve a partnership firm since all partners have mutually agreed upon Closing the partnership firm. Partners can give a mutual consent or may enter into an agreement for the dissolve. Are a partnership firm Compulsory dissolution? A firm may need to be dissolved compulsory if: 1 All Partners or all Partners except one partner are declared insolvent 2 The firm is carrying unlawful activities like dealing in drugs or other illegal products or doing Business with alien countries or other countries that may harm the interest of India of doing other such activities. Dissolution depending on certain contingent events Upon happening of certain events, a firm may be required to get dissolved 1. Expiry of fixed-term-Partnership formed for a fixed term will get dissolved once the term gets over. 2. Completion of task-Sometimes, a partnership is formed for a certain task or objective. Once the task is completed the partnership will automatically get dissolved. 3. Death of the partner– If there are only two partners, and one of the partner dies, the partnership firm will automatically dissolve. If there are more than two partners, other partners may continue to run the firm. In such case, only the partnership will get dissolved, and other partners will enter into a new agreement.
If a partnership business is at will, any partner can dissolve the partnership by giving an advanced notice. Notice will contain a date from which dissolution will be effective.
Documents Required For Dissolution of Partnership Firm
- Original Partnership agreement
- Original Pan Card of firm
- Bank Statement
- Latest ITR copy