Sometimes two or more like-minded people join together to form a business. The simplicity of starting a partnership firm attracts such people to start a business. A partnership firm requires only a partnership deed to commence a business. However, the owners or partners may feel like ending the partnership due to unforeseen circumstances or the impact of external forces. In such cases, they need to take steps to dissolve the partnership legally.
You must apply for the dissolution of partnership firm to avoid the liabilities from impacting you in the future. A partnership firm is not a separate legal entity in the eyes of the law. Partners and their businesses cannot separate themselves from one another. Hence, a legal dissolution becomes necessary.
You must take the step to dissolve partnership firm when someone new joins the partnership or a partner leaves the partnership (other circumstances or death). It allows other partners to continue with the business. The dissolution can end the old partnership and start the new one by reassigning the assets and liabilities of the old partnership. We help you comply with the Indian Partnership Act passed in 1932 specifying dissolution.