Partnership deed

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CA.Nikhil Dhadd (Querist)

03 September 2011 Sir,
I want to know the procedure for admission of new partner in the existing partnership firm after the amended partnership deed has been executed.Which forms needs to be filled with the register of firms?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

03 September 2011 Sometimes, it becomes difficult to run the partnership business due to lack of sufficient capital or managerial help or both. In this case a firm may decide to admit a new partner into the firm. But according to Indian Partnership Act 1932, no partner can be admitted into the firm without the consent of all the existing partners. A person who is admitted, as a partner into the firm does not thereby becomes liable for any act of the firm, done before his admission. A partner is admitted for any one or more of the following reasons:

1. In order to acquire more capital for the business.
2. In order to have more managerial skill, a competent and experienced person is needed.
3. In order to expand and boost up the business.
4. In order to increase the goodwill by admitting a well-reputed person into the business.
5. In order to reduce the competition.

PROCEDURE:

We need to execute a fresh partnership deed admitting the new partner with the new profit/loss sharing ratios and also file a Form V with the registrar of firms.

for more info:

https://cakamalg.blogspot.com/2010/04/formation-of-partnership-firm.html

CA.Nikhil Dhadd

CA.Nikhil Dhadd (Querist)

03 September 2011 Thanks for the input sir.
Do we have to notarise both the amended partnership deed and the form V also.

CS Bijoy

CS Bijoy (Expert)

05 September 2011 You need to execute a fresh partnership deed admitting the new partner with the new profit/loss sharing ratios and also file a Form V with the registrar of firms.

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