DISSOLUTION OF PARTNERSHIP FIRM

ABOUT DISSOLUTION OF PARTNERSHIP FIRM

When the activities of the partner company are terminated, the business on behalf of the partner company is terminated. In such circumstances, all obligations are finally satisfied  by selling the assets or transferring them to a specific partner and clearing all accounts with the partner company.

Any profit or loss will be allocated to the partners according to the profit-sharing ratio agreed  in the partnership agreement.Limited Partnerships may be dissolved under the Indian Limited Partnerships Act."Dissolution of an enterprise" is defined as the dissolution of a partnership between all partners of an enterprise by section 39 of the Indian Partnership Act  of 1932. Dissolution is the process by which the partner company is terminated and all  partners are released from the  rights and obligations of the partnership. On the other hand, dissolving a partner company is different from dissolving a partnership.

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