Being the sole proprietorship is the most convenient type of business entity meant for conducting business as it avails the ease of doing business, 100% reaping of profits, availing the Income tax deductions and exemptions. However, being the sole proprietor, it also puts a number of constraints regarding the decision making and expertise as it is limited to one person only and the business depends on the judgement and wisdom of 1 person only. To expand the business to the next level, the business requires other inputs like capital, expertise, experience which can be fulfilled with the conversion from proprietorship to partnership firm.
Benefits of conversion from Proprietorship to Partnership Firm
Documents required for Conversion
Details of the Partners
PAN and Aadhaar of the Partners
Agreed partnership profit sharing ratio
Detail of the Proprietorship firm to change the status of the proprietorship firm