Due to one or more reasons, the partners of a partnership firm may feel the need to close their partnership firm. In legal terms, the closure of a firm is referred to as the ‘dissolution of a partnership firm’. Broadly, there are two ways of effecting the dissolution of a partnership firm in India – through the intervention of a court (possible only if the partnership firm is registered) or through mutual consent of all the partners concerned. Certain relevant queries in connection with the same have been dealt with below.

  • When one of the partners become of an unsound mind
  • When a partner is guilty of misconduct
  • When a partner is found guilty on the ground of breach of partnership agreement.
  • When a partner has become permanently incapable of performing his duties as partner
  • Dissolution by mutual agreement (most popular way of dissolution)
  • Where the partnership firm is formed for a particular period and after completion of such period the partner can dissolve the firm through a dissolution agreement.
  • Where the partnership firm is formed for a particular purpose and after completion of such purpose the partner can dissolve the firm through a dissolution agreement.
  • Where a partnership is at will, on the death of any partner the partnership firm gets dissolved.
  • Settlement of all liabilities of the firm
  • Transferring remaining balance (profit or loss) to partner’s accounts
  • Closure of bank account of the firm
  • preparation and execution of a dissolution agreement
  • Preparation and filing the income tax return of the firm upto the date of dissolution
  • Surrendering all applicable registrations and obtaining NOCs/ closure certificates, as the case maybe
  • PAN card of partnership firm and all the partners.
  • Original Partnership deed along with all supplementary deed if any.
  • Closure letter of all the Bank accounts operated by the partnership firm.
  • Address proof of all the partners.
  • Rent agreement and utility bill of the address where the partnership firm is registered.
  • Affidavit from all the partners for dissolution of the entity
  • Financial Statement of the partnership firm of last 2 Financial year
  • Financial Statement of partnership firm till the date of dissolution.
  • All the registration Certificates obtained
The time period required for dissolution of Partnership Firm shall depend upon the number of registrations (govt.) obtained by the firm.
The fee shall depend upon various factors. Please book a free appointment with our consultant in order to have a clear understanding.
Legal Terminus can help you with dissolution in a hassle-free manner within a reasonable time span and competitive Professional fees. To know more please book a telephonic appointment with one of our consultants for free.

* Terms & Conditions

It includes preparation of Dissolution Deed only and does not include govt fee payable if any