Partnership Firm Formation & Closure
A partnership firm is governed by the Indian Partnership Act, 1932, and is formed when two or more persons agree to carry on business and share profits.
Partnership structuring involves:
-
Drafting of Partnership Deed
-
Capital contribution planning
-
Profit-sharing ratio determination
-
Rights and duties of partners
-
Admission and retirement clauses
-
Dispute resolution mechanism
Although registration of partnership is not mandatory, it provides legal enforceability of rights.
Compliance considerations include:
-
PAN application
-
GST registration (if applicable)
-
Tax return filing
-
Maintenance of books of accounts
Dissolution of partnership may occur by mutual consent, expiry of term, insolvency, or legal order. Proper settlement of accounts, distribution of assets, and closure documentation is essential to avoid future disputes.
A structured approach ensures clarity in ownership rights and financial responsibilities.