A partnership is an agreement between two or more persons who come together to carry out business activities, while a Pvt ltd company has a separate identity.
Benefits
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No personal liability
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Perpetual succession
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Easy transfer of shares
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Creates brand value
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Raises capital
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Separate legal entity: acquire property on its own name
Requirements
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Partnership firm must be registered and should have a minimum number of 7 partners.
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For conversion, the minimum number of directors is 2
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Directors & shareholders can be the same person
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All the directors must obtain the Director Identification Number and Digital Signature Certificate
Documents required
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PAN card
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Identity card
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Passport size photograph
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Specimen signature of partners
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Latest bank statement
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Utility bill
Conversion process
Step 1: File an application for conversion of company.
Step 2: Submit all the mandatory documents which are required for registration
Step 3: Obtain a Digital Signature Certificate and Director Identification Number.
Step 4: File an application for approval of the name of the company in the prescribed format.
Step 5: Draft MOA & AOA for Private Limited company and file for incorporation.
Step 6: Apply for PAN number of the company.
Step 7: Apply for Corporate Identification Number
Step 8: If all the conditions get fulfilled which are required for incorporation then, a registration certificate is issued to the company.
This whole process may take 25 to 30 days but it also depends on various circumstances.