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Proprietorship to Partnership

  • Proprietorship to Partnership

Convert Proprietorship to Partnership

Transform business to Partnership firm and enjoy extended benefits

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How to choose a name?

Choosing the right structure of Online company Incorporation in Delhi for your business is crucially important. Right type of company Incorporation will help you operate your business effectively and cost efficiently. 

Shared Liabilities

The term Partnership, itself describes two or more individuals coming together for fulfilling some common objective. The partnerships referred here are of pure business nature. 

Partner net worth is Increased

There is a distribution of Post-Tax profits among the partners with no additional tax liability. No Capital Gains tax shall be charged on transfer of property from Proprietorship to Partnership firm. 

No fixed capital investment required

The partners can internally decide on their individual investment in the firm and then divide the stakes accordingly, which gives them the flexibility to make decisions in the business.

Here how it works

1. Fill Form

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2. Call to discuss

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3. Get Certificate

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Convert Proprietorship to Partnership

Whereas the majority of firms begin as sole proprietorships, one can always change the company structure by investigating the advantages of partnership and bringing on a partner. A partner could be needed to boost efficiency and serve as a catalyst for the current business’s rapid growth, particularly when activities reach specific esteemed levels. The business’s growth would be accelerated by increased capital and effort as the number of partners increased.

  • Explore conversion of Proprietorship to Partnership

Have Questions? Find Answers Here

Whether the registration of partnership after conversion from proprietorship is mandatory?

It is not mandatory but highly recommended. If it is not registered, the firm cannot file a suit against any partner or third party. The partners also cannot sue the partnership firm for his/her claim. However, third parties can sue the firm to enforce their dues or claims. Due to non-registration, the rights of parties are not affected. Also, the partnership can be registered at any time after the formation to remove said effects.

What are the advantages of registering a partnership firm?

In a proprietorship firm, there is no legal distinction between you and the business; leaving you personally liable for any debts or obligations the business may incur. Also, there are no limitations and no protection for your personal assets. In case of partnership firm, it is divided amongst the partners.

Under which Government Authority, the application of Partnership Firm Registration is submitted?

The application for Partnership Firm Registration in India is submitted with the Registrar of Firms (RoF) under whose jurisdiction the Place of Business of Partnership Firm falls. The application of Registration is made in required form along with submitting the Partnership Deed. At the end of the registration procedure, the Certificate of Registration is issued by respective RoF. The process and time of registration may differ for each RoF.

Who can be partners?
To be eligible to be a partner, an individual must be a major (above the age of 18), should be sane and should not be disqualified by law from entering into a contract.
Can a new partner be admitted into the partnership firm?

A partner can nominate a successor to take his/her place in the event of death or retirement of the partner. The mode of introducing a new partner or successor is based on provisions in the partnership deed. A new partnership deed is required once the new partner is admitted into the firm.

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