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2021

PRESENTED BY:
Ayesha Arshad 114
Roma Arshad 096
Faiqa Farooq 145

PRESENTED TO:
MAAM MARYAM FAROOQ
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Partnership Act Formation

Its Types, Deed & Dissolution

What is Partnership?
Partnership Act
• This Act may be called the Partnership Act, 1932.
It extends to the whole of Pakistan. It shall come
into force on the 1st day of October, 1932, except
section 69, which shall come into force on the 1st
day of October, 1933.
Partnership Act Formation
2021
Partnership Formation
• The formation of a partnership requires a voluntary
"association" of persons who "own" the business
and intend to conduct the business for profit.
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TYPES OF PARTNERSHIP
There are 3 main types of Partnership
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GENERAL  General partnerships (GP) are the most

PARTNERSHIP simple form of partnership. They are the

easiest to form and the cheapest to
maintain. They are simpler than
corporations and even other types of
partnerships. A general partnership is
formed immediately when partners begin
business activities. There is no official
paperwork required. Only general
partners exist in a GP.

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LIMITED  Limited partnerships (LP) are a form of

PARTNERSHIP partnership that provides more protection

for partners. In an LP, there is at least one
general partner that manages operations
and takes on unlimited liability. The
remaining partners are limited partners,
who hold financial stakes in the business
but are not personally liable for the
business.

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LIMITED
LIABILITY  Limited liability partnerships (LLP) are

PARTNERSHIP an extension of a GP. An LLP is

essentially a GP where all partners are
protected from the actions of other
partners. Essentially, all partners have
limited liability. This is different from an
LP where there must be at least one
partner with unlimited liability.

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PARTNERSHIP
DEED
Deed of partnership or partnership
deed can be defined as a document
that is drawn up by the partners of a
business which contains the rules and
regulations guiding the business. It is
also known as a document which will
clarify the different positions and
duties of the partners in the business.

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CONTENTS OF
PARTNERSHIP
DEED  The name and details of the partners.

 The name of the business.

 The signatories to the bank account(s) of the

business.

 Duration of the Partnership.

 The amount of money contributed by each partner

(capital).

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PARTNERSHI
P
DISSOLUTION
Partnership dissolution refers to the
termination of a partnership as well
as the cessation of its various
business activities. Partnerships can
dissolve for various reasons and
under many circumstances.

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 PROCESS OF 2021

DISSOLVING
YOUR
PARTNERSHIP  Review your Partnership Agreement.

 Discuss the decision to dissolve with the Partners,

 File a dissolution form.

 Notify Others.

 Settle and close out all Accounts.

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THANK YOU!