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
2From India, Tiruppur
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
From India, Pune
Dear Seniors,
I am working in Ltd firm, Our company is going on de-merger process from old to new name. How could we change our factory name in factory licence & what is the process of name change in factory licence . Kindly help me.
Regards
Amit Kumar
From India, Delhi
I am working in Ltd firm, Our company is going on de-merger process from old to new name. How could we change our factory name in factory licence & what is the process of name change in factory licence . Kindly help me.
Regards
Amit Kumar
From India, Delhi
You get all the benefits provided under the company Act, when the firm becomes a company it becomes a legal person, and it gains the individual identity, it stand by its own. for the more good details as to benefits, procedure for conversion etc... i suggest you to visit the website of ministry of corporate affairs....... Ministry of Corporate Affairs (you may click on that link)
From India, Bangalore
From India, Bangalore
The name of the company has to be changed once it is merged and it acquires the new name, usually of the company merging in to, or all together a new name ...... and plz visit the site for more details..... Ministry of Corporate Affairs
From India, Bangalore
From India, Bangalore
Dear sir
i also want to know the benefit of Change a partnership firm as private ltd. company
kindly note my mail ID .arasar18@gmail.com
regarda
ARASU.R.
attribution https://www.citehr.com/400012-benefi...#ixzz1rAlFPf71
From India, Coimbatore
i also want to know the benefit of Change a partnership firm as private ltd. company
kindly note my mail ID .arasar18@gmail.com
regarda
ARASU.R.
attribution https://www.citehr.com/400012-benefi...#ixzz1rAlFPf71
From India, Coimbatore
Arasu,
The incorporation offers certain advantages to the business community as compared with all other kinds of business organisation.
Benefits : I 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 distinct legal persona existing independent of its members.
2. By incorporation under the Companies Act, the company is vested with CORPORATE PERSONALITY which is distinct from the persons who composed it. Once you register as a company you will be getting the "Certificate if Incorporation", issued by the Registrar of Companies. the person who are the members of the company are called the "Body Corporate"
3. Hence, for example, You & two of your friends convert your Partnership in to 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 you establishment is a Company or person (legal person, not a natural person like you, but a person) you as members become Body Corporate.
II. Limited Liability
1. The privilege os limiting your liability for business debts is one of the principal advantages of a company.
2. When the company it self is a person, it is the owner of its assets and bound by its liabilities. the members are neither the owners of the company undertakings not the liable for its debt.
3. In Private limited Company, in case of debts, you are liable only to the extent of your guaranteed amount, say when you had agreed to pay only Rs. 5000/- as your share towards the liability, then you are liable only up to 5000/- and not anything more than that. That is in case of Private Company Limited by Guarantee.
In case of Private Company Limited by Shares , you are liable only 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 under go loses you are bound to meet them, how much ever the loss is..... without any limit, and bound for all the business obligations...
So one os the primary accepted reason for incorporating/ establishment is to limit personal risks, obtaining the benefit of limited liability...
III Perpetual succession
1. Natural person dies right, but the incorporated company, a legal person never dies untill you wind up the company.
2. the members of the company may keep changing the company will not change it will the same, hence the changing in membership does not affect the the company's continuity. it is permanent........
IV Separate property
1. When 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 share holders.
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 a share holder has any interest or right in any item of the property owned by the company, has no legal or equitable interest..........
3. but in case of partnership firm, the partners are the owners of the property of the firm and can do anything with that property and equally liable for its consequences......
V Transferable shares
1. the shares or debentures or other interest of any member in a company is a 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 in a company.
2. on the other hand a partner you can not transfer you partnership interest in the firm....... that is you as a partner can not give off your rights or liabilities, which are derived from partnership, to another...
VI Capacity to sue and be sued
That means, since it is a person and has its own individual identity can deal the legal and judicial matter in its own name ......
if you want to file case again the the company, then it will be Arasu Vs. The HJK privite limited company.
The HJK Pvt. Ltd Co. VS BSSV......
VII Professional Management
1. When there is no human employer, it is the company which hires you as a manager, you will not find any human or share holders control on you........ hence they fell independent and act professional in delivering their management skills....
VIII Finances
1. you as a natural person can not raise the capital from the public, can you ??
hence, you are, the natural person, in a partnership firm, also can not raise the funds or capital from the public subscription in any way, either shares or debentures....
2. but it is the only the Legal person, the company is the only medium of organising business which is given the PRIVILEGE OF RAISING CAPITAL BY PUBLIC SUBSCRIPTIONS either by shares or debentures.......
3. the financial institutions lend their resources more willingly to companies that to other forms of business organisations.
Thus these are the benefits of converting partnership firm in to/ or establishing a corporate or a company.
Hope the info is sufficient for you........
regards,
Sreevidhya BS
From India, Bangalore
The incorporation offers certain advantages to the business community as compared with all other kinds of business organisation.
Benefits : I 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 distinct legal persona existing independent of its members.
2. By incorporation under the Companies Act, the company is vested with CORPORATE PERSONALITY which is distinct from the persons who composed it. Once you register as a company you will be getting the "Certificate if Incorporation", issued by the Registrar of Companies. the person who are the members of the company are called the "Body Corporate"
3. Hence, for example, You & two of your friends convert your Partnership in to 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 you establishment is a Company or person (legal person, not a natural person like you, but a person) you as members become Body Corporate.
II. Limited Liability
1. The privilege os limiting your liability for business debts is one of the principal advantages of a company.
2. When the company it self is a person, it is the owner of its assets and bound by its liabilities. the members are neither the owners of the company undertakings not the liable for its debt.
3. In Private limited Company, in case of debts, you are liable only to the extent of your guaranteed amount, say when you had agreed to pay only Rs. 5000/- as your share towards the liability, then you are liable only up to 5000/- and not anything more than that. That is in case of Private Company Limited by Guarantee.
In case of Private Company Limited by Shares , you are liable only 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 under go loses you are bound to meet them, how much ever the loss is..... without any limit, and bound for all the business obligations...
So one os the primary accepted reason for incorporating/ establishment is to limit personal risks, obtaining the benefit of limited liability...
III Perpetual succession
1. Natural person dies right, but the incorporated company, a legal person never dies untill you wind up the company.
2. the members of the company may keep changing the company will not change it will the same, hence the changing in membership does not affect the the company's continuity. it is permanent........
IV Separate property
1. When 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 share holders.
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 a share holder has any interest or right in any item of the property owned by the company, has no legal or equitable interest..........
3. but in case of partnership firm, the partners are the owners of the property of the firm and can do anything with that property and equally liable for its consequences......
V Transferable shares
1. the shares or debentures or other interest of any member in a company is a 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 in a company.
2. on the other hand a partner you can not transfer you partnership interest in the firm....... that is you as a partner can not give off your rights or liabilities, which are derived from partnership, to another...
VI Capacity to sue and be sued
That means, since it is a person and has its own individual identity can deal the legal and judicial matter in its own name ......
if you want to file case again the the company, then it will be Arasu Vs. The HJK privite limited company.
The HJK Pvt. Ltd Co. VS BSSV......
VII Professional Management
1. When there is no human employer, it is the company which hires you as a manager, you will not find any human or share holders control on you........ hence they fell independent and act professional in delivering their management skills....
VIII Finances
1. you as a natural person can not raise the capital from the public, can you ??
hence, you are, the natural person, in a partnership firm, also can not raise the funds or capital from the public subscription in any way, either shares or debentures....
2. but it is the only the Legal person, the company is the only medium of organising business which is given the PRIVILEGE OF RAISING CAPITAL BY PUBLIC SUBSCRIPTIONS either by shares or debentures.......
3. the financial institutions lend their resources more willingly to companies that to other forms of business organisations.
Thus these are the benefits of converting partnership firm in to/ or establishing a corporate or a company.
Hope the info is sufficient for you........
regards,
Sreevidhya BS
From India, Bangalore
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
From India, Madras
Go through the given website for Ministry of Corporate affairs (mca.gov.in) and know the details regarding the accurate procedures...... if you may still persist any doubts we may always discuss it further........
The process is now become easy comparatively...... even yourself may complete the process alone.....
if you need further guidance, may contact me :
.................
Have a nice day!
From India, Bangalore
The process is now become easy comparatively...... even yourself may complete the process alone.....
if you need further guidance, may contact me :
Have a nice day!
From India, Bangalore
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 as one of the subscribers to the Memorandum i.e. he becomes the first member. In case of partnership firm all the partners become subscribers to the Memorandum of the new company. Or, the new company which is incorporated takes over the sole proprietorship or the partnership firm. There must be specific provision in the Memorandum of the new company for taking over other business 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 acquisition of business.
Steps involved in the conversion:
1. The first step will be 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 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 conversion of partnership into private limited company, visit and to incorporate a new private limited company visit /private-limited.php
From India, Chennai
Steps involved in the conversion:
1. The first step will be 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 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 conversion of partnership into private limited company, visit and to incorporate a new private limited company visit /private-limited.php
From India, Chennai
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
ESIC.Regn.Proce dures,Benefits, documents.docx