Dear All,
What legal steps do we need to take to convert a proprietorship firm into a partnership firm? In the proprietorship firm, we have a service tax number, profession tax number of the proprietor. What is the next procedure?
Thanks & Regards,
Mita
From India
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What legal steps do we need to take to convert a proprietorship firm into a partnership firm? In the proprietorship firm, we have a service tax number, profession tax number of the proprietor. What is the next procedure?
Thanks & Regards,
Mita
From India
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Dear Mita ji,
Proprietorship and partnership are two separate/different entities. In a proprietary setup, the proprietor is the sole owner of the business. In contrast, in a partnership, the partners are the owners of the business. Even if you have the same name and nature of the business in a partnership, you need to have all the registrations, licenses, code numbers, etc., separate in the partnership.
You need to first sign a deed of partnership, get it registered with the registrar of the partnership firm, open a bank account, apply for a PAN number, and obtain the required registrations, licenses, codes, etc.
From India, Mumbai
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2636Proprietorship and partnership are two separate/different entities. In a proprietary setup, the proprietor is the sole owner of the business. In contrast, in a partnership, the partners are the owners of the business. Even if you have the same name and nature of the business in a partnership, you need to have all the registrations, licenses, code numbers, etc., separate in the partnership.
You need to first sign a deed of partnership, get it registered with the registrar of the partnership firm, open a bank account, apply for a PAN number, and obtain the required registrations, licenses, codes, etc.
From India, Mumbai
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Sir, Mr.Keshav’s point is absolutely correct. So do as per his instruction. After getting the PAN in the name of partnership then register with service tax and all other government departments
From India, Coimbatore
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From India, Coimbatore
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Hi Mita ji,
To convert the firm from proprietorship to partnership, first, we need a partner with mutual understanding towards the goal of the business. A deed of agreement should be created in accordance with the codes and ethics to run the business, which will be prepared by an advocate and registered in the registrar of the firm's office.
Subsequently, a joint account will be opened based on the name of the firm. It is essential to have a PAN number and obtain a service tax certificate. Additionally, depending on the workforce, PF and ESIC registration may be required along with other necessary government statutory registrations.
Regards,
Akshay
From India, Bongaigaon
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To convert the firm from proprietorship to partnership, first, we need a partner with mutual understanding towards the goal of the business. A deed of agreement should be created in accordance with the codes and ethics to run the business, which will be prepared by an advocate and registered in the registrar of the firm's office.
Subsequently, a joint account will be opened based on the name of the firm. It is essential to have a PAN number and obtain a service tax certificate. Additionally, depending on the workforce, PF and ESIC registration may be required along with other necessary government statutory registrations.
Regards,
Akshay
From India, Bongaigaon
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Dear Mita,
As advised by others, this Partnership firm is going to be altogether a new firm for which you have to obtain all statutory registration, certificates, codes, etc. in the name of the Partnership Firm. There is no automatic conversion or amendment or transfer from the existing Prop. firm to Part. firm. Therefore, obtain the following:
1. Registration Certificate from the (Sub) Registrar of Firms
2. Registration with the state govt. labour dept. & under the Shops & Commercial Estt. Act
3. PAN
4. TAN
5. Service Tax
6. If it is going to be a small scale or medium estt., then under MSMED Act and NSIC
7. VAT registration if the sale of goods is involved
8. PF/ESI registration.
For your information, there is one more option to have a Limited Liability Partnership Firm (LLPF) the details of which are attached.
From India, Bangalore
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As advised by others, this Partnership firm is going to be altogether a new firm for which you have to obtain all statutory registration, certificates, codes, etc. in the name of the Partnership Firm. There is no automatic conversion or amendment or transfer from the existing Prop. firm to Part. firm. Therefore, obtain the following:
1. Registration Certificate from the (Sub) Registrar of Firms
2. Registration with the state govt. labour dept. & under the Shops & Commercial Estt. Act
3. PAN
4. TAN
5. Service Tax
6. If it is going to be a small scale or medium estt., then under MSMED Act and NSIC
7. VAT registration if the sale of goods is involved
8. PF/ESI registration.
For your information, there is one more option to have a Limited Liability Partnership Firm (LLPF) the details of which are attached.
From India, Bangalore
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Partnership Act.pps