Can I become proprietor of my firm

509 votes

As you have mentioned that you have a partnership firm and you want remove your partners from that partnership firm for that purpose you should look into the agreement between your partners... If there is any provision it may I help you and if there is a no search provisions should file a suit for declaration in the concerned Court...

Advocate Siddharth Dev LawRato

988 votes

Yes it is very much possible to change your partnership firm into a proprietorship concern. We can remove your partners and make you a sole owner of this company. Please show your all doccuments to us or a corporate lawyer and it is legally valid to convert.

Advocate Varun Kumar LawRato

841 votes

Dear Querist

The same shall depend on the type of partnership deed you have executed with the other partners. Whether the partnership deed is registered or not and further what are the relevant contents of the deed. A partnership firm otherwise can be dissolved and you may start the business as sole proprietor.

Advocate Rajat Sehgal LawRato

910 votes

For that purpose you have to first of all dissolve your partnership firm according to the provision / clause mentioned in your partnership deed with the consent of all of your partners. All the assets & liability of the firm including goodwill & intellectual property, if any shall be transferred in your name from the date of dissolution of partnership.
Pay for the share of your partners in monetary terms and get their affidavits / no objection certificates mentioning that they have got their shares / dues and have no objection if the firm is carried out as proprietorship firm in your name.
Inform the bank and other concerned authorities about change in structure of the firm with relevant documents.

Advocate Bhupinder Kumar Jerath LawRato

512 votes

You have raised two different issues which need to answer separately. Your first query relating to removal of partners from your partnership firm. The first and foremost is to read your partnership deed and the clause dealing with removal of partners. I am presuming that you are a managing partner or partner with maximum capital investment. The best way of removal is by mutual consent and clearing all pending dues of outgoing partners. Your firm cannot be converted into a proprietor in current form. You need to dissolve your partnership firm via a seperate disolution deed. The assets/goodwill/capital remains with you, and the erstwhile partners would be reimbursed for the same. You may also impose reasonable restrictions on them to restrain them from interfering with the carrying on of business in future. In the deed of dissolution of partnership do mention that other partners have got no objection in your further continuance of business by you solely and may be by using the same trade name.

To start sole proprietorship you require the PAN card, Current Bank Account in the name of the business you want to do to be operated by you as Proprietor & Registration with the Government Department where the trading business you want to do is required. In case this being service providing business the registration for service tax with revenue department will be required. Its better you do same under consultation of a chartered accountant and a coprorate lawyer.

Advocate Vaibhav Choudhary LawRato