Conversion of Partnership into Company

Conversion of Partnership into Company as Corporatisation is the need of an 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. Conversion of Partnership into Company has its own benefit 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

Requirements

.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