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Dissolution of firm in case of death of partner

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Mohd Khalid

331 Points Posted on 12 July 2023

Hello friends I have query regarding the dissolution of firm in case of partner's death.
I want to know that if a firm is partnership and have two partners, in case when one partner dies partnership will dissolve, then how should the other partner will run the firm?..

Replies (5)

Quick Summary

This discussion explores the implications of a partner's death on a partnership firm. If a two-partner firm dissolves due to one partner's death, the remaining partner must consider options like converting to a sole proprietorship or bringing in new partners. The thread clarifies the difference between dissolving the partnership agreement and dissolving the entire firm, noting that the latter involves ceasing business operations and cancelling registrations like GST.

Shiva Dubey

125 Points Posted on 12 July 2023

May be you have to convert In proprietor or add more partner

Mohd Khalid

331 Points Posted on 12 July 2023

In case of conversion into proprietor what will be the procedure?

Shiva Dubey

125 Points Posted on 12 July 2023

In dissolution their are two terms
1) dissolution of partnership
2) dissolution of partnership firm

Dissolution partnership means expiry of partnership agreement which is they can renew as per their new terms

Secondly dissolution of partnership firm means shutting down business

The contract comes to end no new sales/service had been done during the situation only the remaining payments or debts will recover...

Case 1

only 2 partners
1 died partnership firma comes to end...

3 partners 1 died new one can join and continue if 2 died from 3 comes to end ..