whether conversion of partnership firm to private limited

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 January 2010 Hi,

I would like to know whether conversion of partnership firm to private limited is better or create a NEW private limited company and sell all assets to new private limited company?

Rasesh

Rasesh (Expert)
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26 January 2010 Conversion is a better option.

In creating a new company and transferring the assets and liab of the partnership to the company would need more efforts and a longer procedure. Moreover, the partnership will have to be dissolved at a later state.

In conversion, you can achieve the purpose in a single procedure.