Partnership relinquishment

Lets take it by way of examples

If a partnership firm has more than two partners: In such case if either of a partner retires by will, then the retirement of the partner is notified to the office of Registrar of Firms. If the existing partners wish to add or include new partner then inclusion of partnber is done and reconstitution of the firm is carried out and the same is notified to Office of Registrar of Firms.

If in case a partnership is comprising of two partners and one of the partner retires by will, then the retirement of the partner is notified to the office of Registrar of Firms. If the existing partner wish to add or include new partner then inclusion of partnber is done and reconstitution of the firm is carried out and the same is notified to Office of Registrar of Firms. In the event, the existing partner doesn't wish to include new partner and wish to continue the business under same name & style, then the firm is dissolved and the reconstitution takes place as proprietorship firm.

If the partner wish to restire before hand then the partner has to issue notice informing his intention to retire. As stated supra, Deed of retirement/exclusion  is carried out and the intimation is given to the Registrar of Firms who notify the same and the name of partner retiring is deleted from the firm.

It isnt necessary to executed deed of relinquishment in partnership as partnership firm is a legal entity. If the partner wishes to waive his rights to the assets and profits accured and to which he is entitled, a letter of waiver is signed by the retiring partner. Likewise in case of losses if sustained, the retiring partner can specify that the lossess so sustained can be satisfied and cleared from the profits and assets which the retiring partner is entitled to.

Hope this clarifies your query. In case of further assistance, feel free to communicate.