Partnership
akriti
(Querist) 04 April 2013
This query is : Resolved
Sir,
We are two partners in a firm carrying on business.We are looking forward to admit a new partner into the firm. What are the documents that should be executed. Should the old partnership deed be cancelled and a fresh deed be prepared, or the fresh partnership deed with the inclusion of new partner be prepared without cancelling the old one?
Also,
Is there any changes required in the PAN CARD after admission of new partner, when the Pan card is in the Firms name.
Please advise as soon as possible. Its urgent.
Thanks in advance
prabhakar singh
(Expert) 04 April 2013
Section 30 of Indian Partnership Act, requires that such partner can be introduced only with the consent of all the existing partner. The consent is put in writing by signing a agreement which is called as Deed of Admission. The Deed of Admission must contain the terms regularly contained in Partnership Deed along with the terms of introduction on new partner. It may specifically contains the details of capital introduced by new partner, the new profit and loss sharing ratio amongst all partners, new terms of payment of remuneration to the partners and other terms and conditions laying down rights and duties of partners, etc.
The Deed of Admission must bear the necessary stamp payable under the stamp act applicable in the state in which the partnership deed is signed. It is also advisable to get the deed registered with the Register of Firms of the concerned state in which partnership business is constituted.
If the Firm retains it's old name PAN conversion may not be required but in this regard taking opinion of tax consultant would be advisable.
Adv k . mahesh
(Expert) 04 April 2013
section 30 of indian partnership act applicable in your case
ajay sethi
(Expert) 04 April 2013
agree with prabhakar singhji
Devajyoti Barman
(Expert) 04 April 2013
Yes the particular section squarely applies to you.
V R SHROFF
(Expert) 04 April 2013
agree with prabhakar singhji
Raj Kumar Makkad
(Expert) 04 April 2013
I also agree with the advice of Mr. Singh.
akriti
(Querist) 04 April 2013
Thank you all
akriti
(Querist) 14 April 2013
Prabhakar sir,
Glad if you could answer me one more question.
Our business operation hasn't started yet.
Its due to start in May.
And since there is no operation as of now, is there any point of Goodwill that we should mention in the deed of admission.
Please tell me how to treat admission.
And if you could mail me a sample deed of admission, I would be highly obliged.
Thanks in advance.
akriti
(Querist) 14 April 2013
* How to treat goodwill in admission deed.
