Conversion of a Proprietorship to Partnership

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A sole proprietorship has a sole owner, whereas a partnership has two or more people to operate a business. The Partnership firm is governed by the Partnership Act and a Sole Proprietorship has no specific governing body.

Advantages 

  • Tax benefits

  • Lesser legal compliances

  • Shared responsibility among partners 

Documents required 

  • PAN card

  • Identity card

  • Passport size photograph 

  • Utility bill

  • Copy of rental agreement / Copy of property papers of registered office

  • NOC provided by Owner

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: Draft partnership deed and declare the transfer

Step 4: If all the conditions get fulfilled which are required for incorporation then, a registration certificate is issued to the partnership firm.

This whole process may take 7 to 10 days but it also depends on various circumstances.