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G K B & Associates
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0120-3130570
info@gkb.associates
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Dissolution of Partnership Firm

At G K B & Associates, we help you close down your partnership smoothly and legally, taking care of everything so there are no loose ends. This way, you can move forward without any worries.

Benefits of Proper Dissolution

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    Clear Settlement of Rights & Liabilities – Avoid future disputes between partners.
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    No Further Compliance Burden –Ends tax, regulatory, and filing obligations.
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    Protects Partner Interests – Ensures liabilities are cleared and assets distributed fairly.
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    Avoids Legal Complications – Prevents partners from being dragged into claims after closure.
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    Facilitates a Clean Business Exit –Start a new venture without baggage from the old one.

    • Documents Required for Dissolution of Partnership Firm

    1. 1. Partnership Deed (original)
    2. 2. PAN Card of the firm
    3. 3. PAN & Aadhaar of all partners
    4. 4. Address proof of the firm’s business place
    5. 5. Dissolution Deed signed by all partners
    1. 6. Statement of accounts showing settlement of assets & liabilities
    2. 7. GST registration cancellation proof (if applicable)
    3. 8. Income Tax Return acknowledgments for previous years
    4. 9. NOC from creditors (if any)

    Our Process for Dissolution of a Partnership Firm

    01
    **Consultation & Legal Review**

    We carefully examine the partnership agreement to figure out how the partnership can be dissolved. This could be through mutual agreement, giving notice, a court order, or when the partnership's term or project comes to an end.

    02
    **Drafting Dissolution Deed**

    We create a legally sound Dissolution Deed that clearly outlines how accounts will be settled, assets will be shared, and any outstanding liabilities will be cleared.

    03
    **Settlement of Dues**

    We help with paying off all debts, settling with creditors, and closing any bank accounts that were in the partnership's name.

    Types of Dissolution


    1. Dissolution by Agreement/Mutual Consent – Most common and fastest method.
    2. Compulsory Dissolution – In case of insolvency or business becoming illegal.
    3. Dissolution by Court – When disputes cannot be resolved amicably.

    Tax Compliance After Dissolution


    1. Final Income Tax Return for the firm must be filed.
    2. GST final return (if registered).

    Frequently Asked Questions

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    Dissolution of a partnership firm is the legal closure of a partnership business, where the firm ceases operations, settles liabilities, and distributes remaining assets among partners according to the partnership agreement.
    Common reasons include:
    • Mutual agreement between partners
    • Expiry of the partnership term
    • Completion of the project/business objective
    • Insolvency or financial issues of a partner
    • Dispute among partners making business continuation impossible
    Any partner of the firm can initiate the dissolution process, either through:
    • Mutual agreement
    • Court order in case of disputes or legal requirements
    The timeline depends on the complexity of liabilities and partner agreements, but a straightforward dissolution usually takes 1–3 months.
    The process includes:
    • Agreement or resolution among partners
    • Settlement of all liabilities and debts
    • Distribution of assets among partners
    • Informing tax authorities, banks, and vendors
    • Filing closing formalities with the Registrar (if registered)
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