CONVERSION OF PARTNERSHIP FIRM TO PRIVATE LIMITED:-
The major benefit of registering a private limited company is that it gives a status of a separate legal entity which a partnership firm does not have. In case of a partnership, a partner’s personal assets are attached and they would be held personally responsible for each and every debt or liability that the business incurs. Hence, with the expansion of business, if partners want to increase its credibility and put limited liability on its members, it is more favorable for the partners to convert their partnership into a private limited company. Even though statutory compliance for a private limited company are higher than those of a partnership firm, it gives the company more opportunities to flourish and expand its reach.
The Following Documents are required for Conversion of Partnership Firm to Private Limited:-
- PAN Card of shareholders and Directors & Foreign nationals may provide a passport.
- Aadhar card, Voter ID/ Passport/ Driving License of Shareholders and Directors
- Telephone Bill /Electricity Bill/ Latest Bank Account Statement of Shareholders and Directors
- Latest Passport size photograph of Shareholders and Directors
- Electricity Bill/ Telephone Bill of the registered office address
- No Objection Certificate to be obtained from all the secured creditors of the applicant
- Rent Agreement of the registered office should be provided, if any
- A Copy of Partnership deed and Certificate of Registration duty verified by at least two partners of the general partnership.
- A copy of latest income tax return filed by the Partnership firm