PARTNERSHIP FIRM
GAUTAM KAR
(Querist) 01 February 2011
This query is : Resolved
Hi Experts,
Suppose there is a partnership firm named XY Services & the partners are Mr. X & Mr. Y. But for some legal constraints Mr. X & Mr. Y want to transfer their ownership to Mr. A & Mr. B but want to have the firm name same i.e. XY Services. Is it possible to change the ownership without changing the firm's name ? If YES then How & if NO then Why ?
Amit Minocha
(Expert) 01 February 2011
Simply introduce new partners as A & B and x & Y retire therefrom. But do ensure to make changes in IT/ST/ Excise dept etc. so as to save X & Y from future hustles.
Devajyoti Barman
(Expert) 01 February 2011
Partnership can not be transferred but it can be reconstituted by inducting new partner and or by retiring existing partner. So in your case x and y can retire and new partners like a and b could be introduced. But make sure that at any given point of time at least two partners are there. For undergoing this process the name of the firm need not be changed as the trade name has got nothing to do with the partners or the owners.
M V Gupta
(Expert) 02 February 2011
Execute deed of Reconstitution as suggested above and register it. Also file the copies of the Reconstitution deed with the Registrar of Partnership firms.
malipeddi jaggarao
(Expert) 03 February 2011
Well explained by all experts. Nothing to add.
