Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

Property of partnership firm turn to propreitorship

2158 views

Save Share

Join Us Follow Us Add as Source

maximus

partner

21 Points Posted on 21 April 2012

Dear Sir,

I have a query regarding immovable property of partnership firm turn to propreitorship.

details:

Initially the firm consitutes of 4 partners and they purchased immovable property in the name of firm and also mentioned in sale deed the names of four partners.. later on the death of one partners the legal heir joined and a new partnership deed was formed. Then now the original three partners retire and the legal heir who joined the partnership is remaining in the firm. Now the firm is proprietorship.

my question is whether the remaining propreitor is having ownership right of immovable property.

though it is a municipal land and municipal is mutating in the name of remaining propreitor by registered lease.

whether we have to registered anywhere the name of remaining propreitor for transfer the name.

whether the partnership deed should by compulsorily notarised.

thanks.

Replies (1)

praveen

Chartered Accountant

5709 Points Posted on 21 April 2012

Any question Join us on facebook and our experts will help you.

Hi,

Firstly if all the partners retire I dont think the concern turns automatically into a proprietorship concern. If there is only one partner remaining in the firm the firm should be dissolved and a proprietor concern must then be started.

In case of land as in your case the land will remain in the name of all the partners unless untill the land in registered with the sub-registrar in the name of the person remaining.

The firm must also consider the capital gains implication.

Any question Join us on facebook and our experts will help you.