Anyone can choose a Private limited company to build a scalable business. It’s the most famous legal structure for the business. There is limited liability for all the directors, in case of bankruptcy, banks/creditors can sell only company assets but not the personal assets of directors. Due to its openness to all market scenarios, the private limited structure is very famous for small, medium, and large businesses in India. This structure Is very flexible to external funding and investment. Stock option for employees is also possible through a private limited structure. A Private limited company has more credibility as compared to other incorporation structures.

If you want to limit your responsibilities, planning to get external funds/investment, and want to be more credible in the market, then Private Limited Company (Pvt. Ltd) might be the best option to go with.

Benefits of converting Partnership Firm into a Company:

• Shields personal assets from business liability, limits liabilities of Directors
• The Private Limited Company (Pvt. Ltd) continues to exist even after the death of a Shareholder
• Open doors to raise capital from a venture capitalist, angel investor, financial institutions, etc.
• Creates brand value as a Private Limited structure is more transparent compared to other business structures
• Ownership gets transferred by just transferring shares
• Private Limited Company is a unique identity and can own/acquire and alienate, property in its name. Property owned could be anything like Copyrights, Patents, Trademarks, Building, Intangible Assets, Land, Residential property, Factory, etc.

• All the assets and the liability of the partnership becomes the assets and the liability of the newly formed private limited company.
• The partners receive consideration only by way of allotment of shares in the company and the partners share-holding in the company in aggregate is 50% or more of its total voting power and continue to be as such for 5 years from the date of conversion.

What are the basic requirements for conversion?

• Registered Partnership firm with seven minimum Partners
• Minimum 2 Directors for conversion to Private Limited Company
• The directors and shareholders can be the same person
• DIN (Director Identification Number) is mandatory for all the Directors
• DSC (Digital Signature Certificate) is mandatory for two of the Directors

Documents Required for Conversion of Partnership Firm into Company:

• PAN Card
• Voter's ID/Aadhaar Card/Passport/Driver's License
• Latest Bank Statement/Telephone or Mobile Bill/Electricity or Gas Bill
• Passport-sized photograph
• Specimen signature (blank document with signature [partners only])

Corpseed Procedure for Conversion of Partnership Firm into Company:

• Step 1:  Contact Corpseed team, provide the necessary documents to initiate the conversion process.
• Step 2:  We will assign a dedicated and skilled resource to process your request for conversion.
• Step 3: Apply for Your DSC & DPIN
• Step 4:  Apply for Company Name Reservation
• Step 5: Draft Articles of Association and Memorandum of Association
• Step 6: Apply for Company PAN
• Step 7: Apply for Corporate Identification Number (CIN)
• Step 8: Apply for Incorporation certification.
• Step 9: Once your Private Limited is incorporated, we will send you all the documents and DSC’s.

Note: - Whole conversion process takes between 25-30 days and also depends upon documents provided by applicant and approval speed by the government.

Three Easy Steps Process to Convert Partnership into A Private Limited Company

• Step 1: Connect to Corpseed
• Step 2: Provide necessary documents required for converting Partnership to Private Limited Company
• Step 3: Our expert CS will help you to convert your Partnership to a Private limited company