Closure of Business

Dissolution of Partnership Firm

Wind up a partnership and settle accounts cleanly.

About Dissolution of Partnership Firm

Dissolution of a partnership firm means bringing the business relationship between partners to an end and winding up its affairs. This may happen by mutual agreement, on the completion of the venture, on the retirement or death of a partner where the deed so provides, or by court order. The process involves executing a dissolution deed, settling all outstanding liabilities, realising the firm's assets, and distributing any surplus among the partners according to their profit-sharing ratios. Where the firm is registered with the Registrar of Firms, a notice of dissolution should be filed. Proper dissolution ensures partners are released from future liabilities and the accounts are cleanly closed.

Who needs this

Partners who want to formally wind up and settle their partnership firm.

Documents required

The process — step by step

  1. Agree on dissolution terms among partners
  2. Execute a dissolution deed
  3. Settle liabilities and realise assets
  4. Distribute surplus per profit-sharing ratios
  5. Notify the Registrar of Firms and close PAN/GST

Timeline & fees

Timelines and government fees are indicative and subject to processing by the relevant authority. Approval and its timing are decided by the authority and cannot be guaranteed.

Frequently asked questions

Is a dissolution deed necessary?

Yes. A dissolution deed records the settlement of accounts and releases partners from future liability.

What happens to the firm's assets?

Assets are realised, liabilities paid off, and any surplus distributed among partners per the deed.

Should we inform the Registrar of Firms?

Yes, if the firm was registered, a notice of dissolution should be filed.

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