Home / Dissolution of Firms
What is Dissolution of Firms ?

The Partnership is a venture between two or more partners. In case there are only two partners, upon the death of one of the partners, Partnership Firm gets dissolved. Similarly, upon resignation, lunacy, insolvency of one of the partners, partnership firm has the same consequences. There could be several other reasons.

Documents required for Dissolution of Firms
  • The firm-name.
  • The name of business place.
  • Names of other places, if any, where the firm is carrying on its business.
  • Date of commencement of business.
  • Date when each partner joined the firm.
  • Full names and permanent addresses of all the partners.
  • The duration of the firm, if any.
features of Sole Proprietorship Firm
  • Easy to Start and Close- Registration is quite simple. They do not involve any complexities and can be handled by a single person in a comfortable manner.
  • Minimal Compliance- Since Sole Proprietorships are not governed by any specific law, the legal compliances are minimal. These sorts of firms are acknowledged only because they are registered with the government and for the taxes.
  • Low Cost and Taxes- A Proprietorship with less than Rs. 2 lakhs of income is not required to pay any income tax, as Proprietorships are taxed as the individual owing the business. However, once, income of the business exceeds Rs. 10 lakhs per annum, there are no major advantages for a Proprietorship in terms of taxation.
  • Business Name- Since the name of a Proprietorship is not registered, a Proprietorship can choose to have any name - as long as it does not infringe on a registered trademark.
    ...No Content