Change in Conditions of Partnership
Why Choose Dastawezz ?
A partnership form of business is one of the easiest forms available. It only requires two or more people, with the same understanding, to come to an agreement. It requires minimal compliance and is subject to very less regulations as compared to other form of businesses. As mentioned above, this form of organization comes into existence one two or more people come into an agreement to do business, which is also called a Partnership Deed. Such Deed has the similar effect of Articles in a company and governs the work, terms, rules, bylaws etc. related to the organization. As businesses function in dynamic environments, the need to alter such deed may arise from time to time. Such change may be related to business activity, name of the business, office address, management, capital structure, profit distribution, compensation to partners etc
To give effect to the abovementioned changes,the following needs to be done:
- the Partnership Deed must be altered, and such amendment begins by attaining mutual consent of all partners. This is important because a partnership deed is essentially a form of contract and thereby, it is crucial for all signatory parties to be on the same page.
- Once the amendment to the deed is mutually agreed to by the partners, a supplementary partnership deed is prepared. A supplementary deed is nothing but a newer, amended version of the deed which also requires execution by all partners.
- The above process ends with intimation to the Registrar of Firms, regarding such changes. This is only required if the partnership firm is registered. Such intimation shall only be made in adherence with the provisions of the Partnership Act, 1932, and in specific forms provided thereunder.
ADVANTAGES / FEATURES
- It aids in adapting to changing business environment
- Corrects the vision of business according to new circumstances
- Original Partnership Deed.
- Supplementary Deed as executed by the partners.
- Identification and address proof of partners if the change entails to change in partners.
- If the place of business has been changed, the address proof of the new place along with the rent agreement (if applicable) and NOC from the owner.