Retirement from or dissolution of a partnership
A partner leaving the firm, or the partners closing it down.
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How the paper begins
With Dastavo's sample details; the people and places are fictional. The words in blue are the ones you fill in.
DEED OF RETIREMENT / DISSOLUTION
This deed is made and executed at Amarnagar on 12 October 2026 by and between:
Kabir Sharma son of Shri Dev Sharma, aged about 44 years, resident of House No. 7, Basant Vihar, Amarnagar, Tehsil and District Amarnagar, Punjab (hereinafter called the "FIRST PARTNER", which expression shall, unless repugnant to the context, include his heirs, legal representatives and assigns) of the FIRST PART.
AND
Rohan Kumar son of Shri Om Prakash, aged about 37 years, resident of House No. 12, Street No. 3, Nanak Nagar, Amarnagar, Tehsil and District Amarnagar, Punjab (hereinafter called the "SECOND PARTNER", which expression shall, unless repugnant to the context, include his heirs, legal representatives and assigns) of the SECOND PART.
NOW THIS DEED WITNESSETH AND THE PARTIES HEREBY AGREE AS UNDER:
1.That the parties have been carrying on business in partnership as M/s Sharma Traders under a partnership deed dated 01-04-2022.
2.That the second partner retires from the firm with effect from 31-10-2026, and the first partner shall continue the business under the same name, with all its assets and liabilities.
The rest of the paper is in Dastavo.
What to bring
Papers to bring
- The partnership deed and any later changes, and the firm's registration certificate, PAN and GST registration
- The settled accounts as on the date of retirement or dissolution: the balance sheet, capital accounts and the debts paid
- Proof of the amount paid to the outgoing partner: the bank transfer record or cheque details
- Each partner's identity proof
- Two witnesses, each with an identity proof
Where to go
Signed by all the partners before two witnesses, usually on e-Stamp paper of the value the state fixes; notarising it is optional. It is not usually registered, but ask a lawyer if land or a building goes to a partner.
Fee
The e-Stamp duty follows the state's schedule (dissolution and retirement have their own entries, and a share in land or a building can cost more); ask the e-Stamp centre. Newspaper and Gazette charges for the public notice are separate.
Good to know
- Give public notice in the Official Gazette and a local-language newspaper (s.72 Indian Partnership Act): until then an outgoing partner can still be held liable for the firm's later acts (s.32(3)).
- Tell the Registrar of Firms (s.63), the bank and the GST and income-tax offices; close or change the firm's account and registrations.
- Send the notice to the newspaper with "Cover letter for a newspaper public notice", and keep the full pages.
Papers and fees can change. Check with the office before you go. Guidance only, not yet reviewed by a lawyer.
Stamp paper
Deeds and agreements carry stamp duty that depends on the state, the document and its value; some must be registered with the Sub-Registrar. Check the current duty and registration rules before printing on stamp paper.