Can a partnership firm be converted to Proprietorship firm? Me and my partner are running a partnership firm. But now after 2 years of starting the business there are so many issues arising between us. I want to now exit from the firm. So we both mutually agreed that i will quit the firm and will be given a certain amount in exchange of my share in firm and he will continue on it with all the assets and liabilities on him. So is it possible that we can get this firm converted into proprietorship firm on his name and all the liabilities and assets and profit will belong to him for past and future i.e. i am protected now from anything related to firm even if it is from past. Please suggest. If yes then what document should be created and if no then what is the alternate way.