Proprietorship To Partnership

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Proprietorship To Partnership

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5950* Basic Package

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Overview

Transform Proprietorship to Partnership

Sole Proprietorship is the most preferred choice for small businesses. It is easier to start and operate and ideal for small businesses with limited budgets and operations. The name clearly suggests that a sole proprietorship has only one owner, and all the business income and profits belong to the owner. In addition, it also possesses unlimited liability in the event of losses, and the proprietor can also settle liabilities with their personal assets. However, if you want to expand your business, then higher investment from third parties could face restrictions due to legal ownership of a single individual. Therefore, business owners can look for new methods, ideas, and approaches for the transformation of a proprietorship into a partnership. After the conversion of a proprietorship into partnership, all the rights, assets, and liabilities of the Proprietorship pass on to the partnership firm, according to the consent of partners.

Transform into a Partnership with Simple Steps

Many proprietors aspiring for comprehensive growth through transformation into partnerships face various confusions. However, the following three easy steps can help you get it done easily with our assistance.

Answer Some Questions Quickly

You can fill our questionnaire easily within 10 minutes and enter basic information and documents needed for converting Proprietorship to the partnership. In addition, you can also ensure payments through safe and secure payment gateways with our platform.

Expert Assistance at your Disposal

A dedicated Relationship Manager would work for the transformation of your Proprietorship into partnership. You would also receive competent assistance for drafting the Partnership Deed, Notary of the Partnership Deed, and payments for Stamp Duty on the Deed. Furthermore, you could also receive reliable support for PAN and TAN application

Faster Partnership Setup

Establish the partnership within almost 12 working days, depending on Government processing time.

Advantages

Knowledge and Expertise Sharing

Sole proprietorships reduce the possibilities of attracting external expertise. As business owners obtain investment from new partners after converting from a proprietorship to a partnership, they can also leverage the professional knowledge and contacts of the partner. This approach is especially helpful in cases where new partners are willing to share their expertise and contacts in return for a share in profits generated by the partnership.

Distribution of Liabilities

Converting to a partnership also safeguards owners of sole proprietors from the negative concerns of unlimited liability. Even though a sole proprietorship ensures unlimited liability, it can be a massive detriment in the event of debt or a catastrophic scenario. Therefore, the business owner must take personal liability in case of a proprietorship. On the other hand, a partnership helps in sharing liabilities among all the investing partners. Apart from sharing finance, expertise, and industry knowledge, partners also provide a safety net for businesses.

Single Project Partnerships

Limited partnership arrangements could also foster the benefits of limited exposure to risk for partners. Such type of partnership agreement is generally valid for single projects where partners collaborate with sole proprietors. The single project or limited partnership format helps proprietors in terms of financial assistance for single projects. Partners would have to face limited risks in single project partnerships.

No Need for Starting a New Business

With the conversion of a proprietorship into partnership, all the movable and immovable properties are vested automatically in the partnership alongside the liabilities and assets. Therefore, there is no specific requirement of fixed capital investment to start a new business altogether after the transformation. Partners can reach on agreements regarding their contributing amount to the partnership and mutual decisions regarding withdrawals. So, the transformation from a proprietorship to a partnership does not compromise on flexibility.

Document Required

The creation of a partnership firm has to follow the New GST Registration conditions and obtain the PAN, bank accounts, and GST registration accounts of the partnership firm. The foremost document that seals a partnership is a ‘Partnership Deed.’ The Partnership Deed provides specifications for all the terms and conditions that are enforced in the partnership. After preparing the partnership deed, the taxpayer must apply for a PAN number with the income tax department because it is a mandatory prerequisite for applying for registration under GST. In addition, you would need the following documents for incorporating a partnership.

Identification Proofs

Self- attested copies of PAN card of the firm and all partners
Photos of all partners
Self-attested copy of Aadhaar Card/voter ID/driving license/passport of all partners with the appropriate address provided in the partnership deed
A letter of authorization validating a partner as an authorized signatory for GST registration on behalf of the partnership

Information about the Sole Proprietorship

Business address proof or a document that verifies the company’s business address
Statement of the firm’s bank account or passbook
Copy of the firm’s certificate of registration under any other act
Utility bill or Property Tax Receipt with latest up to two months for the business place

Asset and Liability Statement

Another prominent requirement for registering a partnership refers to the statement of assets and liabilities of the sole proprietor. It is also essential to make sure that a competent CA verifies the statement of assets and liabilities. The details about assets and liabilities help in establishing the foundation for the financial management of the partnership.

Time Lines

(10 to 15 Days)
Purchase the Service
Upload / send the Documents
Discussion with expert
Filing of application with registrar authorities
Receipt of Registration Certificate
Confirmation to client

Service Covered

Pricing for what you want required service

Basic

5950*

Expert Consultation
2 PAN Application (if PAN of partners are not available)
Partnership Deed (stamp paper cost additional on actual)
Conversion process
PAN Application of Firm

Business

9950*

Expert Consultation
Upto 5 PAN Application (if PAN of partners are not available)
Partnership Deed (stamp paper cost additional on actual)
Registration of Partnership Deed (Govt. Fees additional on actual)
PAN / TAN Application
Registration with GST
Registration with MSME
Conversion process
3 months GST return filing upto 50 invoice per month

Enterprise

14950*

Expert Consultation
Upto 10 PAN Application (if PAN of partners are not available)
Partnership Deed (stamp paper cost additional on actual)
Registration of Partnership Deed (Govt. Fees additional on actual)
PAN / TAN Application
Registration with GST
Registration with MSME
Conversion process
3 months GST return filing upto 50 invoice per month
3 months account upto 75 entries per month

Notes:
* This price is inclusive of all Govt filing fee and excluding GST amount.

Proprietorship To Partnership