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Conversion of proprietorship into partnership
there are three partners, and they are alredy doing some business in an unregistered partnership basis. 1. one of the running business is related with cements and steel trading on which their trade license is in the name of one partner 2. their second business is cool bar (ice creams,juices,snacks,coffee,tea etc)on which the trade license is in the name of all partners 3.their proposed business is related with milk products,fruits and veg. they want to convert all their existing one as well as proposed one into registered partnership with equal partnership. there should be a clause for , whatever business they are doing will be shared equally and none of the partners should have any right to acquire personal loans in the name of firm. kindly advise me in this regard
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Plz comment your suggestions
Can be done. Recitals of the deed may specify past business model of oral partnership. Terms of the deed wrt incurring liabilities does not hold a partner from incurring liabilities and on doing so the other partners as well liabile for the acts of such partner. The terms of the deed are a contract of behaviour / conduct among the partners and outsiders may not have notice of the terms of the contract and can approach not only on the partner who incurs such liability but on any partner / firm for the liabilities of the firm.
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