Transform your business into a partnership firm to access greater opportunities and advantages.
Many businesses begin as sole proprietorships, but transitioning to a partnership can provide substantial benefits. Bringing in a partner enhances operational efficiency and accelerates growth by pooling both effort and capital. Converting to a partnership involves following certain procedural steps, after which all assets, liabilities, and rights of the sole proprietorship are transferred to the newly formed partnership, in accordance with the partners’ agreement.
“Partnership” denotes a collaboration between two or more individuals working together to achieve a shared business objective. In such arrangements, partners jointly manage and operate the business, sharing both rights and responsibilities. Along with financial contributions, they bring in skills, expertise, and strategic judgment to strengthen and grow the enterprise.
When a proprietorship is converted into a partnership, all accumulated losses and unabsorbed depreciation are carried forward and treated as the partnership’s losses or depreciation. All assets and liabilities of the proprietorship automatically transfer to the partnership, and both movable and immovable properties vest in the new firm, ensuring a seamless and hassle-free conversion.
After conversion, post-tax profits are shared among partners without incurring additional tax. Transfers of property from the proprietorship to the partnership are exempt from capital gains tax, effectively reducing tax burdens and enhancing the net earnings of all partners.
Partners can decide their individual investments and ownership shares as they see fit. Unequal capital contributions are permitted, with no fixed limits, allowing flexibility in contributions and mutual agreement on withdrawals and financial decisions.
Latest electricity or telephone bill of the registered office address.
Self-attested copies of Aadhaar, Voter ID, Passport, or Driving License for each partner, along with self-attested PAN Card copies.
If the proprietorship has a GST or any other registration, submit the relevant documents to the authorities to update the business status.
A latest CA-certified statement of assets and liabilities.
Call us at: 9414883452 or Email us : contact@submitreturn.com
*Subject to Government processing time
Yes, the new partnership firm is considered a separate legal entity and must apply for a fresh GST registration.
Call us at: 9414883452 or Email us : contact@submitreturn.com
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Convert proprietorship to LLP to leverage on added benefits with limited liability
