Sunitha (Company Secretary) (34 Points)
21 February 2012Dear Friends,
Kindly guide me on the following-
A partnership firm registered in Hyderabad is to be converted into a private company and the same is to be moved to Karnataka. Can we club the shifting process by registering same with RoC Karnataka? If yes how can I go about it? Please explain me with applicable provisions...
Thanks & Regards
Sunitha.
Love Kumar
(COMPANY SECRETARY)
(101 Points)
Replied 22 February 2012
Sunitha,
The very simple process to convert the partnership firm into a company is that you should incorporate a new company in jurisdiction of karnatka ROC and take over the entire business of firm within its main objects i.e. show your main objects as taking over the business of a running partnership firm. Now you have to calculate the net consideration of the firm. Pay the net consideration amount by cheque of issuing of shares in the new company and run the business of a firm as a company. i think that is the appropriate way to convert the partnership firm into a company.
Experts views are prefrable.
Regards
Love Kumar
deepak
(Student CA IPC / IPCC)
(20 Points)
Replied 12 December 2016
Hi Kumar,
What will tax implications be if your method of taking over is followed?
Will the net consideration be taxable? or the purchase of assets be taxable in the hands of partnership / Company?
Regards,
Jhumer
CAclubindia
