Partnership reconstitution
This query is : Resolved
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
- About TDS & Income Tax
- Section 194JA & JB Income which ITR Form to use
- Pass word to open justification report for Q1 for FY 2026-27
- PPF interest-As Exempt Income disclosure
- Under construction property in ITR
- Scrutiny and reopening of past returns
- Booth for sales promotion
- Upload Level ValidationITR3Category of Defect B/D
- Building tax payment deduction in rental Income
- F & O PROFIT REPORTING FOR AY 2026-27
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
- Interest credited in FY2025-2026 & TDS therein by EPFO does not reflect in AIS or Form 26AS
- 44ad eligble money lending interest
- Taxation in the hands of Landowner under JDA
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
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
