Conversion of Partnership Firm into a Private Limited Company
Looking to get your one person company registered? You are in the right spot!
Registering a One-Person Company (OPC) is a popular choice for entrepreneurs seeking limited liability protection and a separate legal identity.
- Expert assisted Online OPC registration in 7 business days
- Name approval, DSC, DIN allotment, PAN, TAN, and compliance filing Done
- Support for annual compliance, financial statements, and statutory audits.
Get Quote Instantly
[wpcode id="11481"]
Table of Content
- Overview of Conversion of Partnership Firm into a Private Limited Company
- Reasons for Conversion
- Eligibility for Conversion of Partnership Firm into Private Limited Company
- Benefits of Conversion
- Documents Required
- FAQ's
Overview of Conversion of Partnership Firm into a Private Limited Company
Conversion of a Partnership Firm into a Private Limited Company is a process where an existing partnership firm transforms into a private limited company (PLC) to avail the benefits of limited liability, easier access to capital, and enhanced credibility. Here’s an overview of the conversion process:
1. Reasons for Conversion
- Limited Liability: A private limited company offers limited liability protection, meaning owners' personal assets are protected from business liabilities, unlike in a partnership.
- Access to Capital : A private limited company can raise capital more easily through equity and debt.
- Growth and Expansion : A private limited company has more opportunities to expand through investment, mergers, and acquisitions.
- Credibility : Being a company, it adds credibility and trustworthiness in business dealings.
- Continuity : The company exists as a separate legal entity, ensuring continuity regardless of changes in ownership.
2. Eligibility for Conversion of Partnership Firm into Private Limited Company
- Unanimous Partner Consent: All partners must agree to convert the firm into a private limited company.
- Firm : The partnership must be a registered firm under the Indian Partnership Act, 1932 or LLP Act, 2008.
- Legal and Viable Business : The firm must engage in legal activities and have a solid capital structure that can be converted into shares.
- Number of Partners : At least two partners are required, which aligns with the minimum requirements for directors and shareholders in a private limited company.
- No Pending Legal Issues : The firm should not have outstanding compliance issues or disputes.
- Compliant Business Activities : The firm should not engage in any prohibited activities.
Related Business Registrations
In addition to registration or incorporation, a business may require other registrations depending on the business activity undertaken. Talk to an Advisor to find out registrations your business may require post registration.
