Benefits of Converting Partnership to Private Limited Company
Owner’s Limited Liability
The company’s obligation or debts of does not create a charge over the owner’s personal assets. Their liability stays limited only to the capital subscribed and unpaid by them. One member of the company is not held responsible for the actions of negligence or misconduct of any other member.
Show MoreManagement and Ownership Separation
The separate ownership and management help both – the company and the management to focus on their potential works. The shareholders assign responsibility to operate and run the company without losing control in the form of voting.
Show MoreSeparate Legal Existence
Once the Company registration in India is done, a legal entity is born in eyes of law. This separates itself from its owners and managers. The company can operate on its own name simply by opening a bank account to own assets and enter into contract with parties. This also provides right to sue third parties in case of any defaults.
Show MoreEasy Fund Raising
Private Limited Company registration process is stringent enough to make this structure credible among others which make fundraising or borrowing from external sources easier. The organization itself provides a number of ways to raise funds in the form of private equity, ESOP, and more.
Show MoreConvert Partnership to Private Limited Company Online
Documents Required to Convert Partnership to Private Limited Company
- PAN Card PAN Card of shareholders and Directors
- Passport Foreign nationals must provide a valid passport.
- Identity Proof Aadhaar card and Voter ID/ Passport/ Driving License of Shareholders and Directors
- Director’s Address Proof Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors
- Photograph Latest Passport size photograph of Shareholders and Directors.
- Business Address Proof Latest Electricity Bill/ Telephone Bill of the registered office address
- NOC from owner No Objection Certificate to be obtained from the owner(s) of registered office
- Rent Agreement Rent Agreement of the registered office should be provided if any
- Notarization In case of NRI or Foreign National, documents of director (s) must be notarized
- Verification A Copy of Partnership deed and Certificate of Registration duty verified by at least two partners of the general partnership
Formulation of Company Name
Build a Unique Identity
Identification plays an important role in making a business outstand in competitive market, build a unique and distinctive name for your business hence enhance your brand’s trust and value. Consumers should identify activity of your business from the brand name so that they can relate your business with its offerings.
Even though it meets all the above criteria, once again make sure that the brand name to be short, easy to remember and simple to pronounce or spell.
Constitution Type
Name of the company must end with “Private Limited” (Pvt.Ltd) as a suffix
Register Online
Convert Partnership Firm to Pvt. Ltd Company in 3 Easy Steps
- Fill up the registration form
Select any package suits your requirement
Fill up the form which will take less than 10 minutes
Make payment through secure payment gateway.
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Provide details & upload documents required for Pvt. Ltd Company registration
Procurement of Digital Signatures (DSC)
Application for company name registration
Documents drafting including MOA and AOA
- Certificate of Incorporation
Application for PAN and TAN
Your Private Limited Company is incorporated.
All it takes 10 to 16 working days*.
*Subjected to Government Processing Time.
The Process of Convert Partnership Firm to Private Limited Company
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Day 1 – 2
Collection of Information
Collection of required documents (Scanned copies)
Review of documents and information provided
Application for Digital Signature (DSC)
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Day 3 – 7
Checking the availability of Name
Finalizing the name with the directors
Drafting MoA, AoA & Other required documents
Review and confirmation form directors
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Day 8 – 10
Name Reservation under SPICe
Filing company registration application
DIN allotment application
Application for PAN and TAN of company
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Day 11 - 13
Name reservation application under SPICe
Filing company registration application
DIN allotment application
Application for PAN and TAN of company
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Day 14 – 16
Your Private Limited Company is incorporated.
All it takes 10 – 16 working days*
*Subjected to Government Processing Time
Enquiry
FAQ
What are the minimum requirements to convert a partnership into Private Limited Company?
For Private Company registration, the following requirements must be fulfilled:
- Minimum 2 directors shall be appointed, out of which one must be a resident of India.
- Minimum 2 shareholders are required for this registration. Here, an individual may become shareholder and director at the same time.
- A place of business in India must be provided as a registered office address
What is FDI Guidelines for Foreigners in a Private Limited Company?
100% Foreign Direct Investment is allowed in India in many of the industries under the Automatic Route. Under the Automatic Route, only a post-investment filing is necessary with the RBI indicating the nature of investment made. There are a few industries that require prior approval from the RBI, and in such cases, approval must first be obtained from RBI prior to the investment.
What is the concept of Common Seal and is importance?
There is no concept of a common seal in partnership. But a private limited company has a common seal which denotes the signature of the company and every company shall have its own common seal.
What is the minimum Capital Requirement?
While registration, minimum authorized capital of Rs. 1 Lakh should be provided. The requirement of minimum paid-up capital is eliminated as a part of Government’s initiative to simplify business registration in India. However, each shareholder must subscribe at least 1 share for the registration and amount sufficient to run a business should be introduced.
What is the statutory compliance required for a Private Limited Company?
A private limited company must hold a Board Meeting at least once in every 3 months. In addition to the Board Meetings, an Annual General Meeting must be held by the Private Limited Company at least once every year.
Who can become director in a Private Limited Company?
Any person above the age of 18 years can become a director in the company after procuring Director Identification Number (DIN). As there are no criteria provided in terms of citizenship or residency, a foreign national can also become a director. The application of DIN Allotment is now merged with the application for the formation of a company subject to a limit of maximum 3 DIN.
What happens to the loss and unabsorbed depreciation of the partnership firm on conversion?
The accumulated loss and unabsorbed depreciation of Partnership firm are deemed to be loss/ depreciation of the successor company for the previous year in which conversion was effected. Thus, such a loss can be carried out for a further eight years in the hands of the successor company.