Can i convert directly my partnership into SOLE propreitorship

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Stock Talks

1 Points Joined April 2023

Hi i have a partnership firm , but now among us the 3 partners the other 2 partners want an exit but i want to run that firm , so will i have to dissolve partnership firm and will i have to like first make all the payments to my creditors , receive payments from all of my debtors , and the payment of each and every family loan or unsecured loans that is with the firm right now , and sell ALL my stock first and then god knows when will that money come in return from my debtors , or

can i simply can they resign from the partnership firm and can i shift their capital account balance in my unsecured loans account and pay them interest for the amount or slowly pay them off

and start doing the buisness as sole proprietor

is this possible

the partners are one joint family members , they can agree on not taking any goodwill or any extra payments by their will and in writing they can accept for all this

or is it neccessary to make other partners the payment for the goodwill and all other things

Replies (2)

CA Aakarsh Jain

10431 Points Joined March 2019

1. There is no method to covert the partnership into sole proprietorship.

2. For this, you have to first dissolve the partnership and distribute the capital and profits among yourself.

3. Thereafter, open a new bank a/c and continue the business.

4. In the deed of dissolution of partnership, do mention that other partners have got objection in your further continuance of business by you solely and may be by using the same trade name.

5. If you need any further assistance, check your inbox once