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Change of partners in partnership deed

CARadhikaBhinde (proprietor) (68 Points)

28 July 2018

Please guide regarding the procedure for change in partners of unregistered partnership firm

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CA Sunil Kumar (Chartered Accountant) (4524 Points)
Replied 28 July 2018

n terms of Section 31 of the Indian Partnership Act, 1932, a new person can be introduced as a partner into a firm with the consent of all the existing partners subject to the execution of a fresh Partnership Deed. At the time of execution of fresh partnership deed presence of all the existing partners along with the new partner and witnesses is essential. All the partners are required to carry the original copy of their respective Permanent Account Number (PAN) as well as residence proofs.

The date when the fresh partnership deed is executed the previous partnership deed shall stand superseded. However, a person who is introduced as a partner into the firm does not become liable for any act of the firm done before he became a partner.