PARTNERSHIP INTO COMPANY
| Basic | Advance |
|---|---|
| ✔ Roc Filing | ✔ Roc Filing |
| ✔ Documentation | |
| ✔ Professional Consultancy |
Partnership into Company in India
Partnership into Company in India
Introduction
Welcome to Bharat Filing Point! We are your one-stop solution for all your business setup and registration needs in India.
At Bharat Filing Point, we understand the complexities of starting and running a business in India. That’s why we are dedicated to providing hassle-free and efficient services to help you navigate through the various legal requirements and regulations.
Do you have questions about how we can help your company? Send us an email at info@bharatfilingpoint.com and we’ll get in touch shortly or visit our website at www.bharatfilingpoint.com.
Overview of Partnership into Company Registration in India
Description
Registering a partnership into a company in India involves legally converting a partnership firm into a company. This process is governed by the Companies Act, 2013, and provides numerous benefits such as limited liability, separate legal entity status, and perpetual succession.
Essential Licenses and Registrations
To successfully convert a partnership into a company in India, the following licenses and registrations are essential:
- Digital Signature Certificate (DSC)
- Director Identification Number (DIN)
- Name Approval
- Memorandum of Association (MOA) and Articles of Association (AOA)
- Filing Forms with the Registrar of Companies (ROC)
- Permanent Account Number (PAN) and Tax Deduction and Collection Account Number (TAN)
Advantages of Partnership into Company in India
- Limited Liability – Shareholders’ liability is limited to their investment.
- Separate Legal Entity – The company can own property, sue, and be sued.
- Raising Capital – Easier to raise funds through equity and loans.
- Transfer of Ownership – Shares can be easily transferred.
- Perpetual Succession – The company continues despite changes in ownership.
- Tax Benefits – Companies may qualify for certain tax deductions.
Disadvantages of Partnership into Company in India
- Complex Compliance – More stringent regulatory requirements.
- Higher Costs – Increased costs for compliance and maintenance.
- Disclosure Requirements – Mandatory public disclosure of financials and other information.
- Dilution of Ownership – New shareholders can dilute the original partners’ ownership.
Registering a Partnership into Company Online in India
Importance
Registering a partnership into a company ensures compliance with Indian laws and provides a more structured and organized business framework. It also helps in building credibility and attracting investments.
Procedure
- Get Digital Signature Certificate (DSC) and Director Identification Number (DIN) – Obtain DSC and DIN for all partners.
- Apply for Name Approval – Submit an application to the ROC for name approval.
- Draft MOA and AOA – Prepare and sign the MOA and AOA.
- File Forms with ROC – Submit required forms and documents to the ROC.
- Get Certificate of Incorporation – Receive the Certificate of Incorporation from ROC.
- Obtain PAN and TAN – Apply for PAN and TAN for the new company.
- Transfer Assets and Liabilities – Transfer the partnership firm’s assets and liabilities to the new company.
Compliance and Maintenance
Regular compliance includes filing annual returns, financial statements, and maintaining statutory registers.
Key Steps to Remember
- Understand the Differences – Know the difference between a partnership firm and a company.
- Follow Legal Requirements – Ensure all legal requirements are met.
- Maintain Proper Documentation – Keep detailed and accurate records.
- Consult Professionals – Seek guidance from experts to ensure smooth conversion.
Eligibility Criteria
To be eligible for conversion:
- The partnership must have a minimum of two partners.
- All partners must agree to the conversion.
- The name of the company should not be identical to any existing company or trademark.
Conclusion
By converting your partnership firm into a company, you can leverage the benefits of limited liability, perpetual succession, and easier access to capital. At Bharat Filing Point, we simplify this process for you, ensuring a seamless transition.
Ready to take the next step? Get started with Bharat Filing Point today!
For any queries, feel free to email us at info@bharatfilingpoint.com.
Company Annual Filing Pvt vs LLP
| FEATURES | Pvt | LLP |
|---|---|---|
| DOCUMENTS | Appointment of Auditor - ADT 01, INC 20 A form filing, DIR 3 KYC (For 2 directors), Accounting & Bookeeping(Upto 100 transactions), Financial statement preparation, Accounting software (1-year license), AOC 4, MGT 7 & ADT filing, Annual filing(Upto turnover of 20 lakhs), Facilitation of Annual General Meeting, Preparation of Minutes & Filing of AGM Report, GST Returns Filings (12 Months), One Year Income Tax filing(Upto turnover of 20 lakhs), Statutory regulations PF, ESI, TDS*, Payroll, PF & ESI filing (Up to 5 employees). | Form 8 & 11 filing(One year), DIR 3 KYC (For 2 directors), Accounting & Bookeeping(Upto 100 transactions), Financial statement preparation, Accounting software (1-year license), GST Returns Filings (12 Months), One Year Income Tax filing(Upto turnover of 20 lakhs), Statutory regulations PF, ESI, TDS*, Payroll, PF & ESI filing (Up to 5 employees). |
| Time | 7-9 working days | 7-9 working days |
Documents Required for Partnership into Company in India
To convert a partnership into a company in India, the following documents are required:
- Registered Partnership Firm: The partnership firm must be registered with the relevant authorities.
- Minimum Share Capital: The minimum share capital for conversion into a private limited company is Rs. 100,000 (INR One Lac).
- Partnership Deed: The partnership deed must have a provision for converting the firm into a company.
- Agreement between Partners: An agreement between the partners to convert the firm into a company is necessary.
- Director Identification Number (DIN): Director Identification Number (DIN) for all the Directors.
- Digital Signature Certificate (DSC): Digital Signature Certificate (DSC) for two of the Directors.
- Minimum 2 Shareholders and Directors: There must be a minimum of two shareholders and directors, who can be the same person.
- Registered Premises: Proof of the registered premises of the partnership firm.
- Legal Documents: Legal documents such as agreements, contracts, and licenses of the partnership firm.
- Affidavit: An affidavit from all the partners, duly notarized, to provide that in the event of registration, they will comply with all the provisions of the Companies Act, 2013.
- Consent from Secured Creditors: Written consent or No Objection Certificate from the secured creditors of the firm, if any.
- Name Approval: Name approval in RUN for the proposed company.
- Advertisement: An advertisement about registration seeking objections, if any, in Form No. URC. 2, which shall be published in a newspaper, in English and in the principal vernacular language of the district in which the office of such firm is situated.
These documents are essential for the conversion of a partnership into a company in India. Neglecting this crucial paperwork can lead to complications and failure of the conversion process. It is advisable to seek legal counsel to ensure the correct drafting and submission of these documents.
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Partnership into Company FAQ’s
How long does it take to convert a partnership firm into a company?
Can a partnership firm be converted into any type of company?
Yes, a partnership firm can be converted into any type of company, such as a private limited company, public limited company, or one-person company, depending on the requirements and objectives of the partners.
Is it mandatory to have a minimum number of partners to convert a partnership firm into a company?
No, having a minimum number of partners is not mandatory to convert a partnership firm into a company. However, the company must have a minimum of two directors and two shareholders. In the case of a Person Company, there can be only one director and shareholder.
Converting a partnership firm into a company takes around 2-3 months, depending on the time taken to complete the legal formalities.