Procedure of converting partnership firm into a private limited company

As firms starts growing, they convert themself into a private limited company(Benefits of Private Limited Company). The firm can be converted into a private limited company by following the provisions of Part 9 of the Companies Act, 1956.

You can get your firm registered into a private limited company in just 15 days by spending only ₹ 7650(assuming authorized capital is ₹1lakh). Yes you heard it right. Converting a partnership firm into a private limited company is not an arduous task. Wonder how you are going to do that? Just follow the page till the end and you will get answers to all your questions.

DAY(1-2):- Hold a meeting with the partners to discuss the following business

You need >=3/4th of the members consent as present in person or where proxies are allowed.(Say if you are 10 members then you need consent of more than 5 members)

Authorize one or more partners to take all necessary future steps.(Say Mr XYZ) Execute a supplementary partnership deed to align it with the following requirements:

1)-Minimum partners needed = 7.2)-Take consent of all the partners. It can be done by a contract in writing.3)-Stamp Cost:-Max ₹750.

Process completed:-5%Process time:- 1-2 daysCost incurred:-Max ₹750

DAY(3-7)-Application for Director’s Identification Number(DIN) and Digital Signatures Certificate(DSC)

Minimum 2 directors are required for a Private Limited Company. DIN process is online so don’t worry. Simply go to http://www.mca.gov.in/MCA21?Din.html

and fill details like1. Name(s)2. Father’s Name(s)3. Permanent Residential Address(s)4. Present Residential Address(s)5. Occupation6. Name of the Companies in which the promoter is Director/Promoter7. Date of Birth8. E-mail IDs(Minimum 2)

Pay ₹500 online as fee. Obtain Digital Signature certificate from the prescribed authorities(Details)

Documents required for Digital Certificate:1. Copy of Passport2. Voter ID3. Ration Card4. Driving License5. PAN Card6. Telephone Bill7. Electricity Bill

8. Bank Statement Promoter(s) needs to sign the application Fees:- ₹1500-2000 with 2 years validity.

Process completion:-30%Process time:-5-6 daysCost Incurred:- ₹2000-2500

DAY(9-14):-NAME APPROVAL

Fill Form No. 1A with the Registrar of Companies(ROC) with following annexures.1. Certified true copy of

a)-Partnership Deedb)-Latest balance sheet of the partnershipc)-Latest income tax assessment order/returnd)-Resolution passed by the firm in this regard

2. Consent of all the partners that they have agreed to register the partnership firm as a company.(You need at least 2 private promoters in a Private limited Company)

3. Digitally signed application(by one of the promoters). Details to be filled.

1. Maximum 6 alternative company’s names to be proposed(in order of preference)2. Authorized Capital of proposed Company(Min. paid up capital needed =Rs 1Lakh)3. Main objects of the proposed Company.4. State of Registered Office of Company(eg.Uttar Pradesh,Rajasthan etc)5. Copy of Trade Mark Application/Certificate If name of proposed company is based

on a trade mark. ROC fees:- ₹1000 ROC will inform you within 7 days, if the name is rejected then apply again with new names.

Process completion:-60% Process time:-Max 7 days.Cost incurred:- ₹1000

DAY15:Registration of Company

Now you have your company’s name, file following documents with ROC( within 60 days from date of name approval).

1. Two sets of Memorandum and Articles of Association(AOA) of the company with one set duly stamped.(Stamp Cost- ₹ 200 in Delhi on MOA and 0.15% of Authorized capital on AOA)

2. Above Documents needs to be filled with basic details like Name, Number of shares subscribed, signature etc in front of professionals.

3. If director is foreigner and not present in India, then take his sign in Indian Embassy located in his home country.

4. Form No 1:-It’s a declaration to be executed on a non-judicial stamp paper by one of the directors of the proposed company or others like CA,CS,Advocates etc.

5. Form No 18: To be filled by one of the directors of the company informing ROC, the registered office of proposed company.

6. Form No 32:- It’s a form stating the fact of appointment of the proposed directors on the board of directors from the date of incorporation of the proposed company and is signed by one of the proposed directors.

7. Power of attorney signed by all the subscribers of MOA authorizing one of the subscribers or any other person to act on their behalf for the purpose of incorporation and accepting the certificate of incorporation.

8. Form No 37 along with Form No 39.9. Declaration by two partners verifying the particulars in above documents.10. Get Consent letters from Directors11. Filling fees:- ₹320012. Other Information to be submitted:-

i) A list showing the names, addresses and occupations of all members of company with details of shares or stock held by them.

ii) If the company is intended to be registered as a limited company, a statement specifying the following particulars:

a) the nominal share capital of the company and the number of shares into which it is divided or the amount of stock of which it consists

b) the number of shares taken and the amount paid of each share

c) the name of the company, with the addition of the word “Limited” or “Private Limited” as the case may be, as the last word / words, in case the company is being registered with limited liability.

Hurray you are done with the registration. The registrar shall issue you a certificate of incorporation.

Process completion:100%

Process time:-1 Day

Cost incurred:- ₹3400

Congratulation on becoming a Pvt Ltd Company.

Total Cost: ₹7650

Time:- 15 Days

If you have any doubts regarding any step then you can call us any time.Our customer care executives will address you 24*7.

Don’t have time to convert your partnership firm into pvt ltd company. Don’t worry we will do it for you.Contact our customer service executives for more details.Hope you enjoyed the session.