Partnership deed Amendment

Partnership Deed Amendment

Partnership Deed is a fundamental document for the firm as it governs the firm’s operations and activities.

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Overview

Partnership Deed is a fundamental document for the firm as it governs the firm’s operations and activities.

The partners must abide by the clauses of partnership deed during its existence and must not act beyond the scope drawn.

To extend or restrict the scope of activities or operations, partners may change the partnership agreement.

The changes in Partnership deed are made by execution of a supplementary deed which is an addendum to the original partnership deed.

Payment of appropriate stamp duty is a must for said deed.

The registration of the supplementary deed would be compulsory if the firm is already registered with Registrar of Firm.

Overview

PAN and Aadhaar Card

Both PAN and Aadhaar Card of all Indian Shareholders and Directors

Identity Proof

Either Voter ID, Passport, or Driving License of the Shareholders and Directors.

Proof of Address

Copy of the latest Telephone Bill, Electricity Bill, or Bank Account Statement of the Shareholders and Directors

Photographs

Latest passport size photographs of all the Shareholders and Directors

Business Address Proof

Either of the latest Utility Bill (Electricity, Telephone, Gas, Water) or Property Tax Bill of the registered office address. Rent agreement and NOC from the owner in case of rented property

Proof of Address

Copy of the latest Telephone Bill, Electricity Bill, or Bank Account Statement of the Shareholders and Directors

Reasons of change in Partnership Deed

Change of Partners and rights and responsibilities

It is the most common reason for modification indeed. Any existing partner may be unable to continue or new partner may be required to be added with the growth of the business. In all these cases of appointment, addition, removal, resignation or death of a partner, supplementary partnership deed for a change of partners is executed.

Change Business Activity or name

As said, the firm cannot act beyond the scope drawn by the agreement. Thus, if required to undertake new business activity, the partners must amend the business clause of the partnership deed enumerating the new activities. Also, the modification may take place to restrict the scope of activities by removing discontinued activities.

Change capital and profit sharing ratio

Where capital is the need of business, return is need for partners. The capital can be increased to expand business or other requirements. The change in capital mostly comes with change in profit sharing or ownership ratio, too. Both would require the change in partnership deed. The change in capital also demands payment of additional stamp duty to Government.

Change other clauses

Name of partnership or change in place of business, the addition of branch office etc. can be made effective through executing the supplementary deed. Other clauses cover change in term & conditions of appointment, resignation and notice period, the power of operations, jurisdiction of partnership, the manner of dissolution and duration of the partnership, etc. \

Documents required to modify Partnership deed

Partnership Deed

Original Partnership deed with the modifications made, if any

PAN Card

Copy of PAN card of the firm to be provided

Proof from new partner

Copy of PAN card and address proof of new partner, if applicable

Filings First

Change Deed in 3 easy steps

1. Answer Quick Questions

Fill in our questionnaires that take less than 10 minutes
Provide basic details & documents
Make payment through secured payment gateways

2. Experts are Here to Help

Assigned Relationship Manager
Drafting of Supplementary Deed
Payment of stamp duty on the deed
Notarization of deed

3. Partnership Deed is modified

All it takes is 7 – 10 working days*

Filings First

Process to modify Partnership Deed

Day 1

Discussion and consultancy for required changes
Collection of basic Information & documents

Day 2 - 4

Drafting of the supplementary deed
Review and provide deed after signature

Day 5 - 7

Payment of required Stamp Duty
Notary on the signed supplementary deed

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Have Questions? Find Answers Here

How does the supplementary agreement is executed?

Once the deed is prepared by the professionals and confirmed by the partners, appropriate stamp duty is paid on the agreement. The notarization of the deed is followed
by the signature of all partners reflecting their approval for the change.

What is the amount of stamp duty payable?

Stamp duty is variable and based on the concerned State law of firm. It is calculated based on the capital contribution involved in the change. However, if there is no change in capital, the supplementary deed must be executed by payment of Rs 100/- towards stamp duty (included in package cost). The stamp duty in addition to said amount shall be payable separately.

Whether change in constitution of partnership firm is required to be notified to RoF?

If the original partnership deed is duly registered with Registrar of Firms, then any modifications must also be notified to the RoF after its execution.

How can I add new Partner in the Partnership Firm in India?

The addition of a new partner can be made in a manner prescribed by the effective Partnership Deed. The partner to be added should fulfill the requirement as prescribed in the deed if any. The change of partner in partnership deed must be reflected along with the date of addition, terms, and conditions of joining, etc.

How a partner may resign from the firm? Whether partnership deed should be changed in such case?

The resigning partner should first intimate about his willingness to resign to existing partners through resignation letter. The notice period can be as decided and mentioned in the DIN. Further, all the partners including the exiting partner have to enter in agreement (supplementary deed) whereby all the conditions and fact of exit should be enumerated.

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