Change in Partnership Deed
Change in partnership deed is made if the situation require for such change in conducting the regular affairs of the entity. Any such change shall be made through Supplementary Partnership Deed which forms part of main Partnership Deed.
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Any partnership firm incorporated by the registrar of firms shall be governed and regulated by the Partnership Act 1932 and the partnership firm is also regulated and governed by its by-laws. These by-laws are mentioned in Partnership Deed. This partnership deed is duly executed on requisite value of stamp paper as per Indian Stamp Act and the stamp duty is applicable on state to state basis based upon the location of registered office of the partnership firm. A partnership deed is designed and drafted as per the requirement of business activity of the partnership firm.
Main Clauses of partnership deed are:
- Capital of the firm
- Capital contribution ratio amongst the partner
- Profit sharing ratio amongst the partner
- Duties and responsibilities of partners
- Identification of working and non-working partner
- Admission of partner
- Retirement of partner
- Lien clause
- Alteration of Capital
- Meetings of the partners
- Common seal
- Dividend and Reserve
- Accounts of the firm
- Indemnity Clause
- Dissolution of Firm
For effective and smooth functioning of the partnership firm, there might arise the requirement for change in partnership deed of the firm. In case if there is any change in partnership deed in the above mentioned partnership clause or any addition or deletion of any other clause then alteration of the same need to be occur.
Procedure of change in Partnership Deed of the firm:
- All partners must called and convene a proper meeting of partners
- All partners must aware of alteration in any clause of partnership deed
- All partners have right to ask questions, raise query and raise objection or acceptance for the alteration in any clause of partnership deed
- Once all partners make consensus on alteration in partnership deed, then a partnership deed must be redrafted and shared with all partners.
- This re-drafted partnership deed need to get executed on duly stamped stamp paper of requisite value. This executed partnership deed must mention that it is in continuation of original partnership deed and this altered partnership deed is supplementary deed with the date of its effect.
- Once supplementary partnership deed is executed, then together with original partnership deed and all subsequent supplementary deed constitute new guidelines / bye-laws of the partnership firm and all partners must abide by the altered partnership deed.
With the ever changing Law and regulatory requirements, we keep on track and advise the same on timely manner in order to ensure proper compliance. We at ReturnFilings.Com will understand the purpose of your change in partnership Deed and thereafter will provide you detailed analysis mentioning the law requirement and compliances need to fulfil in order to provide change in partnership deed related services economically and efficiently. We at ReturnFilings.Com will provide you details of regulatory filings in order to ensure proper smooth and timely compliances. We at ReturnFilings.Com are determinate to provide end to end solution; our motto is you concentrate on your business while we at ReturnFilings.Com will take care of all your compliances need.