Conversion of Partnership Firm into Private Limited Company
The entire world is gradually drifting towards one global market without any trade barriers between the countries. The emergence of corporate work culture and promotional startup benefits, a great chunk of entrepreneurs are looking forward to corporatization. This step can be initiated in 2 ways as enumerated below:
1. Incorporation of a new Company.
2. Conversion of existing entity (e.g. Partnership Firm) into a Company.
The 2nd option of conversion of Partnership Firm into a Company might be practical for the existing entities to switch over from one mode of business to another. The process of conversion is a step by step procedure, which is a technical process but if handled with expert knowledge may be time and cost saving, as well.
We, Compliance Hands,a team of more than 50 qualified professionals like CA, CS, Advocates etc, having experience of more than 5 years of handling task like this and have completed more than 2000 projects. We ensure are the all the compliance on time and you can carry on your business without any hiccups.
- Advantages
- Disadvantages
1. Partnership do not have the concept of shareholders that’s why Company is more suitable to get investment from Venture Capitalist, Investors.
2.Lesser Tax Liability as compare to Partnership.
3.Foreign Direct Investment (FDI) in a private limited company is under the automatic route whereas FDI in Partnership is under the approval route.
4.Separate Legal Entity with Limited Liability.
5.Private limited company offers its promoters a better image or standing than that of a Partnership.
1. In Partnership, there is no concept of Board Meetings or Annual General Meeting. So annual compliance is comparatively lesser.
2. There is no need of compliance related to meetings and maintenance of huge statutory records.
“If you really want to do something, you’ll find a way. If you don’t, you’ll find an excuse.” – jim rohn
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Conversion of Partnership Firm into Private Company
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