In partnership firms, the board of directors, partners, or proprietors is a governing body that makes all the decisions regarding the operation of the business. Sometimes, a firm may need to welcome or bid adieu to its members due to the reconstitution of the partnership, retirement, or untimely death of a partner.
CompRegi understands the necessity and importance of the procedure of addition or removal of a partner/proprietor/director and the timely execution of the procedure according to the law. We are here to help guide you through the whole transition by adhering to the Indian Partnership Act, 1932, and Companies Act, 2013, to help your business grow without any hindrance Bhilai.
We at Compregi believe in complete transparency in the complete registration process of your company. Below mentioned cost structure includes all the necessary government fees required at multiple stages of registration.
A business may want to opt for the expulsion of a partner or add a new partner or a proper director for many reasons, including:
Virtual Seal for both the directors to sign the documents.
A Director proprietor or partner resigns from the partnership at will through a partner resignation letter
One of the parties or directors is voluntarily exiting from the business and has submitted a partner resignation letter due to personal interest, differences of opinion conflicts, or other ventures.
Due to the unfortunate death of a director or a partner, or proprietor, their position becomes vacant.
A firm may need to expel its proprietor, partner, or director if the individual fails to fulfil the duties or liabilities of partners in the partnership firm, is non-performing, or breaches the partnership agreement deed.
Sometimes, the addition or removal of a partner proprietor or director is necessary to reconstitute a partnership firm.
Reconstruction of the partnership or positions of proprietor or director may be necessary due to reconstitution of the partnership firm after the organization's business goals change.
A firm may add or remove a proprietor/ partner/ director according to the Partnership Act 1932 rules by following the regulatory and legal procedures:
The requirements for the removal of a partner from the partnership deed format and from the company are as follows-
The partner/proprietor/director violates the rules of the partnership deed due to lousy relation of the partner to third parties or due to any misconduct that hinders the growth of the organization
The partner/proprietor/director is unfit to perform their duties due to health or any other issue
A partner/proprietor/director may be removed due to a massive amount of partnership loan, which liabilities and damages the reputation of the firm
The partner/proprietor/director is disqualified to hold their position due to legal procedures or criminal conviction.
The Indian Partnership Act has been in force since 1932, and it mentions the criteria for an individual to be eligible to become a partner/proprietor/Director. The requirements are as follows:
To become a partner, an individual must be
One individual can become a director of a partnership firm if they fulfil the following criteria.
One can become a partner or can be added as a new partner in a firm or partnership business if they fulfil these conditions:
To add/remove a proprietor/partner/director from a partnership firm, here are the needed documents:
If there are a certain number of partners, the firm may need to register the new partner with the regulatory authorities.
To add a new proprietor, the Identity and address proof of the new proprietor, trade license, GST license, agreement with the company, and the deed bearing the new proprietor's name.
A proprietor can be removed if they engage in misconduct, are the subject of criminal proceedings, or become unfit to perform their duties.
The minimum number of members required to start a private company is 2. All these members have limited liability, and the maximum number of members goes up to 200.