Partnership reconstitution
This query is : Resolved
Quick Summary
29 May 2024
Hi there,
Can a partner retire and a new partner be added simultaneously in a registered partnership firm having 2 partners. If so, what is the procedure?
Can a partner retire and a new partner be added simultaneously in a registered partnership firm having 2 partners. If so, what is the procedure?
29 May 2024
just make reconstitution deed
13 August 2025
Procedure for Reconstitution (Simultaneous Retirement & Admission):
Convene a meeting of the existing partners.
Document the decision to retire one partner and admit a new one.
Prepare a new partnership agreement.
Draft the Reconstitution Deed
This deed should include:
Date of retirement of the outgoing partner.
Admission date of the new partner.
New profit-sharing ratio.
Settlement of the retiring partner’s capital.
Continuation of business by remaining and incoming partners.
Update Registration with Registrar of Firms (if the firm is registered):
File Form V (change in constitution of firm) under the Indian Partnership Act.
Attach:
Copy of the reconstitution deed.
Consent of the retiring partner.
Admission details of the new partner.
Fees as per state-specific rules.
Update PAN, GST, Bank, and Other Registrations:
Inform the PAN authority (via NSDL/UTIITSL).
Update GST registration (online via GST portal).
Update the firm’s bank account with the new deed and KYC documents.
Modify any licenses held by the firm.
Retiring Partner’s Settlement:
Settle dues, capital balance, and share of goodwill (if any).
Get a No Due Certificate signed by the retiring partner.
Convene a meeting of the existing partners.
Document the decision to retire one partner and admit a new one.
Prepare a new partnership agreement.
Draft the Reconstitution Deed
This deed should include:
Date of retirement of the outgoing partner.
Admission date of the new partner.
New profit-sharing ratio.
Settlement of the retiring partner’s capital.
Continuation of business by remaining and incoming partners.
Update Registration with Registrar of Firms (if the firm is registered):
File Form V (change in constitution of firm) under the Indian Partnership Act.
Attach:
Copy of the reconstitution deed.
Consent of the retiring partner.
Admission details of the new partner.
Fees as per state-specific rules.
Update PAN, GST, Bank, and Other Registrations:
Inform the PAN authority (via NSDL/UTIITSL).
Update GST registration (online via GST portal).
Update the firm’s bank account with the new deed and KYC documents.
Modify any licenses held by the firm.
Retiring Partner’s Settlement:
Settle dues, capital balance, and share of goodwill (if any).
Get a No Due Certificate signed by the retiring partner.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- RELATED TO TRIBUNAL APPEAL
- Bank details not Visible on Traces Portal
- Taxability of Partnership firm for FY 2025-26
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- TDS AND ITR ISSUE
- RATE AND HSN CODE
- LIC maturity claim whether taxable
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
