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Kalyanrao Peddireddi
Resource Centre / Categories :- Miscellaneous  » Miscellaneous
LEGAL PROCEDURE FOR INCORPORATION OF A PUBLIC LTD COMPANY AND CONVERSTION OF PARTNERSHIP FIRM INTO PUBLIC LTD CO.
Kalyanrao Peddireddi | 01/01/1970


To register the Private Limited Company or Public Limited Company.

 

Public Limited Company:

Requirements 

Minimum Share Capital shall be Rs. 500,000. (With Share Capital)

Minimum 7 Shareholders 

Minimum 3 Directors (The directors and shareholders can be same person)

DIN (Director Identification Number) for all the Directors*

DSC (Digital Signature Certificate) for two of the Directors*

  *You canl apply from Concerned Department.

 

Documents required:

ID Proof of all Shareholders

ID proof of all Directors

Address proof of Regd. Office of company

NOC from the landlord of the premises*

Memorandum and Articles of Association** 

You can get draft NOC for your learned Advocate or you can download it from website.

Your learned Advocate will draft Memorandum and Articles of Association.

 

CONVERSION OF PARTNERSHIP:

All partners of the partnership firm shall become shareholders of the company in the same proportion in which their capital accounts stood in the books of the firm on the date of the conversion.

The partners receive consideration only by way of allotment of shares in 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.

Conversion of a Partnership firm into a Company (Private/Public) is similar to steps involved in formation of an Indian Private/Public Limited Company (Except processing of few additional e-Forms).

 

Additional Requirement:

Registered Partnership firm with minimum 7 Partners. (If the requirement is not fulfilled by the firm, then the Partnership deed should be amended)

Partnership Deed

Registration Proof


Conversion of a Partnership firm into Company (Private/Public)

 

Key Benefits:

Automatic Transfer

All the assets and liabilities of the firm immediately before the conversion become the assets and liabilities of the company.

No Stamp Duty

All movable and immovable properties of the firm automatically vest in the Company. No instrument of transfer is required to be executed and hence no stamp duty is required to be paid.

No Capital Gain Tax

No Capital Gains tax shall be charged on transfer of property from Partnership firm to Company.

Continuation of Brand Value

The goodwill of the Partnership firm and its brand value is kept intact and continues to enjoy the previous success story with a better legal recognition.

Carry forward and Set off Losses and Unabsorbed Depreciation

The accumulated loss and unabsorbed depreciation of Partnership firm is deemed to be loss/ depreciation of the successor company for the previous year in which conversion was effected. Thus such loss can be carried for further eight years in the hands of the successor company.

 

By MR.KALYAN RAO PEDDI REDDI B.COM (HONS) IN COMPANY LAW & SECRETARIAL PRAC.  & BUSINESS ADMINISTRATION & ECONOMICS, ECONOMIC DEVELOPMENT; LL.M (CONSITUTIONAL LAW of India), COMPARATIVE STUDY IN (U. S. American Constitution, Swiss Constitution, FRENCH CONSTITUTION & British Constitution),

C.E.O OF KALYAN LEGAL EXCEL CARE SERVICES ONLINE FOR CITIZENS & N.R.Is.

www.legalexcelcare.com

(LAUNCH: 1.1.2018),

Former District & Sessions Judge, now lives at HYDERABAD, INDIA

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