Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Takeover of partnership firm by parents

Save Share

This query is : Resolved

bobby ponnada (Querist)

23 September 2015 Hello Sir/Madam,
We have a Partnership firm In Hyderabad Incorporated under Partnership act, 1932. and this partnership firm managed by 2 partners. Due to some reasons The parents and one of the relative ( 3 Members) wants to join as partners in the firm. and earlier partners of the firm ( 2 sons) wants to quit from the firm.
In this scenario kindly let us know that how to handle this situation.
1. will it comes under sale of partnership firm? or kindly let us know the procedure for the taking of Partnership firm by parents.

Guest

Guest (Expert)

24 September 2015 Legally if the 3 members come on the same date when the two members resign, then it will amount to sale of Assets from One partnership firm to other because partnership is a "relationship" between partners. However, if done progressively - for example, one partner retires and two partner comes in and later on the other partner resigns and so on, then it will not amount to sale of partnership.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now