Dear seniors, What is the benefits by changing a partnership firm as private ltd and what are all procedures needed to change......
From India, Tiruppur
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2From India, Tiruppur
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Dear Seniors, I am running the Pvt. Ltd Company want to shift to limited liability partnership firm pl guide the benefits and losses
From India, Pune
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From India, Pune
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Dear Seniors,
I am working in a Ltd firm. Our company is undergoing a de-merger process from the old to a new name. How can we change our factory name in the factory license, and what is the process for the name change in the factory license? Kindly assist me.
Regards,
Amit Kumar
From India, Delhi
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I am working in a Ltd firm. Our company is undergoing a de-merger process from the old to a new name. How can we change our factory name in the factory license, and what is the process for the name change in the factory license? Kindly assist me.
Regards,
Amit Kumar
From India, Delhi
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You get all the benefits provided under the Company Act when the firm becomes a company. It becomes a legal person and gains individual identity. It stands on its own. For more details on benefits, procedures for conversion, etc., I suggest you visit the website of the Ministry of Corporate Affairs, [Ministry of Corporate Affairs](http://www.mca.gov.in) (you may click on that link).
From India, Bangalore
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From India, Bangalore
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The name of the company has to be changed once it is merged and it acquires the new name, usually of the company merging into, or altogether a new name. Please visit the site for more details: [Ministry of Corporate Affairs](http://www.mca.gov.in).
From India, Bangalore
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From India, Bangalore
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Dear sir,
I also want to know the benefits of changing a partnership firm to a private limited company. Kindly note my email address: arasar18@gmail.com.
Regards,
ARASU.R.
Attribution: https://www.citehr.com/400012-benefi...#ixzz1rAlFPf71
From India, Coimbatore
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I also want to know the benefits of changing a partnership firm to a private limited company. Kindly note my email address: arasar18@gmail.com.
Regards,
ARASU.R.
Attribution: https://www.citehr.com/400012-benefi...#ixzz1rAlFPf71
From India, Coimbatore
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Arasu,
The incorporation offers certain advantages to the business community compared with all other kinds of business organizations.
Benefits:
Independent corporate existence
1. A partnership firm has no existence apart from its members. It is nothing but a collection of the partners. A company, on the other hand, is, in law, a person. In legal terms, it is a distinct legal persona existing independently of its members.
2. By incorporation under the Companies Act, the company is vested with corporate personality that is distinct from the persons who composed it. Once you register as a company, you will be getting the "Certificate of Incorporation," issued by the Registrar of Companies. The persons who are the members of the company are called the "Body Corporate."
3. Hence, for example, you and two of your friends convert your partnership into a company. That means you are dissolving your partnership and establishing a company; the establishment becomes separate from you, and you are separate. So, the company will be given a name, and you are just the members of it. Here, your establishment is a company or a person (legal person, not a natural person like you, but a person); you as members become Body Corporate.
[II. Limited Liability]
1. The privilege of limiting your liability for business debts is one of the principal advantages of a company.
2. When the company itself is a person, it is the owner of its assets and bound by its liabilities. The members are neither the owners of the company's undertakings nor liable for its debts.
3. In a Private Limited Company, in case of debts, you are liable only to the extent of your guaranteed amount. For example, when you have agreed to pay only Rs. 5000/- as your share towards the liability, then you are liable only up to Rs. 5000 and not anything more than that. That is in the case of a Private Company Limited by Guarantee.
In the case of a Private Company Limited by Shares, you are liable only to the extent of the Nominal Value (the face value, the initial value fixed for a share) of the shares.
4. In a partnership, if you undergo losses, you are bound to meet them, no matter how significant the loss is, without any limit, and are bound for all the business obligations.
One of the primary accepted reasons for incorporating/establishment is to limit personal risks, obtaining the benefit of limited liability.
[III. Perpetual succession]
1. A natural person dies, but the incorporated company, a legal person, never dies until you wind up the company.
2. The members of the company may keep changing, but the company will not change; it will remain the same. Hence, the change in membership does not affect the company's continuity; it is permanent.
[IV. Separate property]
1. When a company is a legal person, it is capable of owning, enjoying, and disposing of the property in its own name. The company is the owner of its assets, not the shareholders.
2. The company is a real person in which all its property is vested, and by which it is controlled, managed, and disposed of. No member or shareholder has any interest or right in any item of the property owned by the company; they have no legal or equitable interest.
3. In the case of a partnership firm, the partners are the owners of the property of the firm and can do anything with that property and are equally liable for its consequences.
[V. Transferable shares]
1. The shares, debentures, or other interests of any member in a company are movable property and transferable in the manner provided by the company. Thus, you can transfer, sell, or buy the shares or any interest in the company.
2. On the other hand, as a partner, you cannot transfer your partnership interest in the firm; you cannot give off your rights or liabilities, which are derived from the partnership, to another.
[VI. Capacity to sue and be sued]
That means, since it is a person and has its own individual identity, it can deal with legal and judicial matters in its own name.
If you want to file a case against the company, it will be Arasu Vs. The HJK Private Limited Company.
The HJK Pvt. Ltd Co. VS BSSV.
[VII. Professional Management]
1. When there is no human employer, it is the company that hires you as a manager. You will not find any human or shareholders' control over you. Hence, they feel independent and act professionally in delivering their management skills.
[VIII. Finances]
1. You, as a natural person, cannot raise capital from the public. Can you?
Hence, you, the natural person, in a partnership firm, also cannot raise funds or capital from public subscription in any way, either through shares or debentures.
2. But it is only the legal person, the company, that is the only medium of organizing business given the privilege of raising capital by public subscriptions, either through shares or debentures.
3. Financial institutions lend their resources more willingly to companies than to other forms of business organizations.
Thus, these are the benefits of converting a partnership firm into or establishing a corporation or a company.
Hope the information is sufficient for you.
Regards,
Sreevidhya BS
From India, Bangalore
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The incorporation offers certain advantages to the business community compared with all other kinds of business organizations.
Benefits:
Independent corporate existence
1. A partnership firm has no existence apart from its members. It is nothing but a collection of the partners. A company, on the other hand, is, in law, a person. In legal terms, it is a distinct legal persona existing independently of its members.
2. By incorporation under the Companies Act, the company is vested with corporate personality that is distinct from the persons who composed it. Once you register as a company, you will be getting the "Certificate of Incorporation," issued by the Registrar of Companies. The persons who are the members of the company are called the "Body Corporate."
3. Hence, for example, you and two of your friends convert your partnership into a company. That means you are dissolving your partnership and establishing a company; the establishment becomes separate from you, and you are separate. So, the company will be given a name, and you are just the members of it. Here, your establishment is a company or a person (legal person, not a natural person like you, but a person); you as members become Body Corporate.
[II. Limited Liability]
1. The privilege of limiting your liability for business debts is one of the principal advantages of a company.
2. When the company itself is a person, it is the owner of its assets and bound by its liabilities. The members are neither the owners of the company's undertakings nor liable for its debts.
3. In a Private Limited Company, in case of debts, you are liable only to the extent of your guaranteed amount. For example, when you have agreed to pay only Rs. 5000/- as your share towards the liability, then you are liable only up to Rs. 5000 and not anything more than that. That is in the case of a Private Company Limited by Guarantee.
In the case of a Private Company Limited by Shares, you are liable only to the extent of the Nominal Value (the face value, the initial value fixed for a share) of the shares.
4. In a partnership, if you undergo losses, you are bound to meet them, no matter how significant the loss is, without any limit, and are bound for all the business obligations.
One of the primary accepted reasons for incorporating/establishment is to limit personal risks, obtaining the benefit of limited liability.
[III. Perpetual succession]
1. A natural person dies, but the incorporated company, a legal person, never dies until you wind up the company.
2. The members of the company may keep changing, but the company will not change; it will remain the same. Hence, the change in membership does not affect the company's continuity; it is permanent.
[IV. Separate property]
1. When a company is a legal person, it is capable of owning, enjoying, and disposing of the property in its own name. The company is the owner of its assets, not the shareholders.
2. The company is a real person in which all its property is vested, and by which it is controlled, managed, and disposed of. No member or shareholder has any interest or right in any item of the property owned by the company; they have no legal or equitable interest.
3. In the case of a partnership firm, the partners are the owners of the property of the firm and can do anything with that property and are equally liable for its consequences.
[V. Transferable shares]
1. The shares, debentures, or other interests of any member in a company are movable property and transferable in the manner provided by the company. Thus, you can transfer, sell, or buy the shares or any interest in the company.
2. On the other hand, as a partner, you cannot transfer your partnership interest in the firm; you cannot give off your rights or liabilities, which are derived from the partnership, to another.
[VI. Capacity to sue and be sued]
That means, since it is a person and has its own individual identity, it can deal with legal and judicial matters in its own name.
If you want to file a case against the company, it will be Arasu Vs. The HJK Private Limited Company.
The HJK Pvt. Ltd Co. VS BSSV.
[VII. Professional Management]
1. When there is no human employer, it is the company that hires you as a manager. You will not find any human or shareholders' control over you. Hence, they feel independent and act professionally in delivering their management skills.
[VIII. Finances]
1. You, as a natural person, cannot raise capital from the public. Can you?
Hence, you, the natural person, in a partnership firm, also cannot raise funds or capital from public subscription in any way, either through shares or debentures.
2. But it is only the legal person, the company, that is the only medium of organizing business given the privilege of raising capital by public subscriptions, either through shares or debentures.
3. Financial institutions lend their resources more willingly to companies than to other forms of business organizations.
Thus, these are the benefits of converting a partnership firm into or establishing a corporation or a company.
Hope the information is sufficient for you.
Regards,
Sreevidhya BS
From India, Bangalore
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I want complete procedure of changing partnership firm to pvt ltd firm.and name changed.also handing over is any agreement to be made about liabilities etc.reply on my email id
From India, Madras
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From India, Madras
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Go through the given website for the Ministry of Corporate Affairs (mca.gov.in) to understand the details regarding the accurate procedures. If you still have any doubts, we can further discuss them.
The process has now become easier comparatively. You can even complete the process alone. If you need further guidance, you may contact me at bssv.bssv@gmail.com.
Have a nice day!
From India, Bangalore
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The process has now become easier comparatively. You can even complete the process alone. If you need further guidance, you may contact me at bssv.bssv@gmail.com.
Have a nice day!
From India, Bangalore
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A proprietary business may be converted into a company, or a partnership firm may be converted into a company. A company is incorporated by making the sole proprietor one of the subscribers to the Memorandum, i.e., he becomes the first member. In the case of a partnership firm, all the partners become subscribers to the Memorandum of the new company. Alternatively, the new company, which is incorporated, takes over the sole proprietorship or the partnership firm. There must be a specific provision in the Memorandum of the new company for taking over other businesses as one of its objects, and powers must be given to the Board of Directors by the Articles of the new company to enter into agreements for the acquisition of businesses.
Steps involved in the conversion:
1. The first step will be the incorporation of a new company with the required provisions in the Memorandum and the Articles.
2. A resolution to acquire the other business shall be passed at a General Meeting requesting the Board of Directors to do the needful.
3. The Board of Directors shall enter into an agreement with the firm for its acquisition.
4. A copy of the agreement shall be filed with the Registrar within 30 days.
5. Shares have to be allotted by the Board of Directors to the partners of the firm so acquired (if it is a partnership firm) according to the terms of the agreement.
6. A return of such allotment has to be filed with the Registrar within 30 days to complete the registration.
To know more about the conversion of a partnership into a private limited company, visit [website]. To incorporate a new private limited company, visit [website].
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From India, Chennai
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Steps involved in the conversion:
1. The first step will be the incorporation of a new company with the required provisions in the Memorandum and the Articles.
2. A resolution to acquire the other business shall be passed at a General Meeting requesting the Board of Directors to do the needful.
3. The Board of Directors shall enter into an agreement with the firm for its acquisition.
4. A copy of the agreement shall be filed with the Registrar within 30 days.
5. Shares have to be allotted by the Board of Directors to the partners of the firm so acquired (if it is a partnership firm) according to the terms of the agreement.
6. A return of such allotment has to be filed with the Registrar within 30 days to complete the registration.
To know more about the conversion of a partnership into a private limited company, visit [website]. To incorporate a new private limited company, visit [website].
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I have corrected the spelling and grammar errors, adjusted the paragraph formatting, and ensured the message's original meaning is preserved. Let me know if you need further assistance.
From India, Chennai
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