The Partnership firms enjoys the benefit of being more than 1 person entity, having the mutual understanding between the partners regarding the management of the firm, compliances made under the Income Tax Act. However, in order to flourish the business to the next level, there is a need to change the legal status from the Partnership firm to the Private Limited Company.

Benefits of conversion from Partnership Firms to Private Limited Company

Corporate Entity

Being converted into Private Limited Company, it enjoys the status of corporate entity. Hence, enjoying the benefit of corporate entity enjoys more credit worthiness in the eyes of customers and suppliers.

Limited liability of Owners

Being a private limited liability, the liability of the shareholders is limited to the extent of the capital contributed by them.

Higher chances of fund raising

In case of start-ups, the Investors lend their confidence on the Private Limited Company to invest their money in the start-up ideas.

Documents required for Conversion

  • Self-attested copy of PAN Card of the Shareholders and Directors. In case of Foreign nationals, a valid passport is required.

  • Self-attested copy of Identity proof of the Shareholders and Directors (Aadhar card, Driving Licence, Voter ID, Passport)

  • Self-attested copy of Address proof of the Shareholders and Directors (Latest electricity bill /  telephone bill /  bank statements)

  • Latest photographs of Shareholders and Directors.

  • Address proof of Registered business premises (Latest electricity bill / telephone bill)

  • Rent agreement in case the premises is leased or rented.

  • NOC from the owner of the property.