Conversion of Partnership into Company
Corporatisation is the need of the hour. The entire world is gradually drafting towers on the global market without any trade barriers between the countries. A small unincorporated organization led by few partners cannot think of growth on large scale without corporatizing itself. Corporatization has its own advantages such as limited liability perpetual succession, Transferability of share, easy access to funds etc.
Advantages of conversion
- No Stamp Duty
- No Capital Gain Tax
- Continuation of Board Value
- Carry Forward and Set off Losses and Unabsorbed Depreciation .
Process of converting
- Filing of requisite form for Conversion
- Preparation of Foundation documents of the Company
- Filing for name approval
- Filing of Incorporation document
Receiving certificate of incorporation
- .Registered Partnership firm with minimum 7 Partners
- Minimum Share Capital shall be Rs. 100,000 (INR One Lac) for conversion into a Private Limited Company
Minimum Share Capital shall be Rs. 500,000 (INR five Lac) for conversion into a Public Limited Co.
If the above requirement is not fulfilled by the firm, then the Partnership deed should be altered
Minimum 7 Shareholders
Minimum 2 Directors (for Private Limited Co.) and 3 Directors (for Public Limited Co.)
The directors and shareholders can be same person
DIN (Director Identification Number) for all the Directors
DSC (Digital Signature Certificate) for two of the Directors