Business Partnership is the easiest way to start doing a business in any country worldwide. All you need is a partnership agreement of sharing profits and losses of the firm and providing your skills and hard work towards the growth of the company.
If you have recently planned to enter into a partnership with an existing firm, then you and that firm will be writing a new partnership deed on new profit/loss sharing terms.
How to Become a Business Partner in an Existing Business in India
For becoming a business partner in an existing firm, Section 31 of the Indian Partnership Act, 1932, says that you need the consent of all the existing partners of the firm to be ready to add you as a new partner.
And for adding a new partner the whole business terms will have to be re-written on the partnership agreement you will be signing with them.
Introduction of a New Partner
At the time of execution of the “process of introduction of new partner “, all the present partners along with the new partner (to be introduced) must be present with the witnesses.
All the partners must provide the original copy of their PAN (Permanent Account Number) Card along with the copy of residence proof.
The date on which the new partnership deed is executed, the previous partnership deed shall stand superseded.
The person introduced in the firm does not hold the liability of any previous acts of the firm, before the introduction of the new partner.
Note that the aforementioned procedure is the broad overview of the procedure and you must consult a lawyer or a CA/CS for taking valid advice regarding the subject, this article is based on the actual research I did during the formation of one of businesses.
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