yashsr (CA) (2285 Points)
03 January 2013Hello,
There is firm known as 'Sachin Enterprises' of which Sachin is the Proprietor. Now, Sachin wants to enter into a partnership with Kambli and convert the Proprietorship into a Partnership known as say 'Cricket Enterprises'.
Please let me know how to go about it. How should the conversion be reflected or in other words what should be added to shown the 'conversion process' in the normal Partnership Deed?
UDAY MANDAL
(ACCOUNTANT)
(21 Points)
Replied 29 June 2015
one proprietorship firm convert to partnership deed format is required
Yash Choudhary
(Trainee)
(42 Points)
Replied 01 July 2015
A Proprietorship concern can be converted into the a partnership following the below procedure:
1) Minimum 2 members(partners) to be there to form a partnership
2) By mutual understandings of the partners a deed as to be prepared as per Indian Partnership Act, 1932
3) The partership can be registered under the Indian Partnership Act, 1932
4) If your proprietory concern is registered under various act(s) like Sales Tax, Service Tax or other, then concerned forms to be submitted accordingly to change the status of your firm/business.
5) A seperate PAN has be obtained by the Income Tax Department and accordingly the IT Returns has be to filed. And after conversion to partnership the assets & liabilities of the firm of proprietory concern can be transferred to the firm's name.
for further queries refer to https://www.lawyersclubindia.com/forum/Converting-Proprietorship-firm-in-to-Partnership-firm-23598.asp#.VZOTKiR3j5U
ARYAN
(C.A. FINAL STUDENT)
(39 Points)
Replied 06 January 2017
what is the tax implications on conversion of Proprietorship into Partnership firm............???
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