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in/

Conversion of a
Partnership into
Private/Public Company
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Incorporation is the need of the hour. The world

gradually between a global market without any
trade barriers flows. A small unincorporated
organization led by some colleagues as
corporatising can not think of without a large-
scale development. Such incorporation, limited
liability, perpetual succession, shares
Transferability, its advantages as easy access
to funds etc.
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Key Benefits

Automatic Transfer

All assets and liabilities of the firm

immediately before the conversion become
the assets and liabilities of the company.

No Stamp Duty

All movable and immovable properties of the

firm automatically vest in the company. No
instrument of transfer to be executed and
hence no stamp duty is required to be paid is
required.
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No Capital Gain Tax

No capital gains tax on the transfer of

property owned firm will be charged to the
company.

Continuation of Brand Value

Goodwill and brand value and has retained

ownership of the firm a better legal
recognition of the success story of the past
are released to enjoy.
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Carry Forward and Set off Losses and

Unabsorbed Depreciation

The accumulated loss and unabsorbed

depreciation of owned firm, the successor
company to be effective in the last year of
conversion loss / depreciation is considered.
Thus, the successor company in the hands of
such damage can be for eight years.
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Key Conditions

All partners of the partnership firm shall

become shareholders of the company in the
same proportion in which their capital
accounts stood in the books of the firm on the
date of the conversion.

The partners receive consideration only by way

of allotment of shares in company and The
partners share holding in the company in
aggregate is 50% or more of its total voting
power and continue to be as such for 5 years
from the date of conversion.
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Key Requirements:

Registered partnerships with at least 7 Partners

The minimum share capital will be Rs. 100,000

(INR One Lac) for conversion into a private
limited company

The minimum share capital will be Rs. 500,000

(INR five Lac) for conversion into a public
limited company

The above requirement is not fulfilled by the

firm, then the Partnership deed should be
changed
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Minimum 7 Shareholders

Minimum 2 Directors (private limited company)

and 3 directors (public limited company)

Directors and shareholders can be same

person

DIN (Director Identification Number) for all

directors

DSC (Digital Signature Certificate) for two of

the Directors
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Steps in Conversion of a Partnership

firm into a Company (Private/Public)

A company (private / public), a partnership fi

rm
in the conversion step (excluding the
processing of additional EFORMS) is an Indian
private / public limited company formation is
similar to the steps involved.
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Address
Investment Junction KPCT Mall, Same Wing of Vishal Mega
Mart,
Shop No. B-3, Fatima Nagar,
Pune - 411013

Contact No : 9371151733 / 7798612243

Email Id : info@investmentjunction.in