Partnership To Private Ltd
At Just Rs 13,999/- (All inclusive)
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Within 15-20 Working Days
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Conversion of Partnership To Private Limited Company
A small unincorporated organization led by few partners cannot think of growth on large scale without corporation itself. Corporation has its own advantages such as Limited Liability, Perpetual Succession, Transfer ability of shares, easy access to funds etc. A partnership firm may be converted into a company either by making all the partners subscribers to the Memorandum of the new company or, the new company which is incorporated takes over the partnership firm which is known as Partnership to Private Limited Company Conversion. There must be specific provision in the Memorandum of the new company for taking over other business as one of its objects and powers must be given to the Board of Directors by the Articles of the new company, to enter into agreements for acquisition of business.
Condition For Partnership to Private Limited Company Conversion
- All the assets and the liability of the Partnership concern relating to the business immediately before the succession become the assets and the liability of the company.
- The shareholding of the Partnership the private limited company is not less than 50% of the total voting power in the company and his shareholding continues to remain so for a time period of 5 years from the date of the succession.
- The partners of Partnership firm does not receive any benefit or consideration, directly or indirectly, in any form or manner, other than by way of allotment of shares in the company.
- The Board of Directors shall enter into an agreement with the firm for its acquisition.
- Shares have to be allotted by the Board of Directors to the partners according to the terms of agreement.
- There must be at least 7 partners and the partnership firm has to be registered
Documents For Partnership to Private Limited Company Conversion
- Passport size photograph of Directors
- Copy of Aadhaar Card/ Voter identity card
- Copy of PAN Card of the Directors
- Electricity/ Water bill (Business Place)
- Landlord NOC (Format will be provided)
- Service tax or sales tax number if any
- Proprietorship registration certificate
Cost of Partnership to Private Limited Company Conversion
|Company Name Search||NIL|
|TAN & PAN Fees||180|
Procedure of Partnership to Private Limited Company Conversion
Obtaining DIN & DSC(1-3 Working Day)
- Digital Signature Certificate(DSC) and Director Identification Number(DIN) is required for the proposed Directors of the Private Limited Company. DIN and DSC can be obtained for the proposed Directors within 5 to 7 days.
Document Review & Completion(3-4 Working Day)
- After obtaining the DSC and DIN of the proposed Directors, our team will get in touch for a unique name and along with that collect all the requisite documents in scan for the incorporation of the company through the SPICE i.e INC 32.
Document Submission(1-2 Working Day)
- After the review of all the documents required, we will submit them to the MCA and once it gets approved by the ministry we will send the MOA & AOA via mail and DSC through courier
FAQ’s About Partnership to Private Limited Company Conversion
What are the requirements to execute a supplementary partnership deed?
- There must be at least 7 Partner in the partnership firm.
- The firm may be registered with the Registrar of Firms.
- There must be a fixed capital divided into units.
- There must be provision of converting a firm into company.
- There must be an agreement by the partners to convert the partnership to a company. This can be done by a contract in writing to this effect to which the partner’s resolution for conversion can be attached as annexure.
- Execute a settlement deed.
What is the minimum paid-up capital of a Private Limited Company?
As per the amendment in the Companies Act, 2013 there is no minimum amount of paid up share capital required for the Incorporation. There is no upper limit on having the authorized capital and the paid up capital. It can be increased any time, by payment of additional stamp duty and registration fee.
What is the Memorandum of Association (MOA) and the Articles of Association (AOA) of a company and what is the procedure in their regard?
On receipt of the name approval letter from the ROC the MOA and the AOA are required to be drafted. The MOA states the main, ancillary / subsidiary and other objects of the proposed company. The AOA contains the rules and procedures for the routine conduct of the proposed company. It also states the authorized share capital of the proposed company and the names of its first / permanent directors. After the MOA and AOA are required to be stamped.
A stamp duty is required to be paid on the MOA and on the AOA. The stamp duty depends on the authorized share capital.
Can NRI’s/Foreign national become a director in Private Ltd Company?
Yes, a NRI or a foreign national can become the director in the private limited company, subject to the condition that out of all the directors’ atleast one director should be resident in India for more than 182 days.
Apart from one condition above, there is no other condition attached to it.
How is the certificate of incorporation issued?
After all the documents are filed, the ROC calls the attorney on a specific date for scrutiny and making the corrections in the MOA and AOA filed. On complying with the same, the certificate of incorporation is granted to the attorney.
What are the documents required for bank account opening of Private Ltd Company?
Once the private limited company is formed, there are various documents which are required for bank account opening. The lists of documents required for opening the bank account are as follows:
- Certificate of Incorporation
- PAN Card Acknowledgement
- Memorandum of Association (MOA)
- Articles of Association (AOA)
- Board Resolution as per the format is given by Bank
- Bank Account opening form as per respective bank.