The most important reason for conversion of a company into an LLP is on the tax front. The entire world is gradually becoming a global market, while every world leader is trying to reduce any kind of trade barrier which might be existing. Year 1999-2000, in case of conversion of a proprietorship concern or a partnership firm into a company no capital gain shall arise if the following conditions are fulfilled :- Proprietorship firm into Private/ Public Company . The best way out over here is to convert proprietorship to private limited company.


Sections 565 to 581 deal with conversion of firms into a company under the Companies Act, 1956. Conversion of Proprietorship into Private Company creates a better prestige in market of the company.

Now question is as follows : 1) How the Immovable properties ( Land and Building ) of Proprietorhsip firm will be registered in the name of company.

Currently, the Income-tax Act, 1961, provides for payment of minimum alternate tax (MAT) as also for payment … Conversion of Sole Proprietorship To Pvt Ltd Small Business can be easily started with Sole Proprietorship due to less compliance requirement; it is the smallest form of business organisation. As it has only one person, a sole proprietorship cannot be directly converted into a LLP.

conversion of partnership in to company is given below, in 5 steps. For the purpose of conversion of sole proprietor to a private limited company, it is necessary by the promoters of the company to indulge into an agreement which is to be made for selling the business.

Asst. Letter of Authority/Power of Attorney. Conversion of Proprietorship Firm into LLP. At the time of the new Private Limited Company, it is appropriate to mention in the Memorandum of Association (MOA) that the company is a “takeover of a sole proprietorship concern.” Testimony of registered office address can be presented in the form of a copy of the electricity bill, rent agreement, sale deed and so forth. Conversion of Proprietorship into Private Limited Company can be beneficial in many ways; this Article provides the procedure, benefits and requirements for conversion of proprietorship into private limited company. The need of reorganisation of business by converting a proprietorship concern or a partnership firm into a limited company has been recognised and w.e.f.

Upon incorporation of the Company, all assets ( immovable and movable properties) and liablities shall vest into the Company. A proprietorship concern is getting converted into Pvt. Conversion of sole proprietorship firm into an LLP Conversion of a sole proprietorship firm into llp is a good option for anyone who wishes to expand his/her small and medium scale enterprise. Conversion of Proprietorship firm into LLP Benefits: A) Automatic transfer All the assets and liabilities of the firm immediately before the conversion become the assets and liabilities of the LLP. Key Benefits.

Year 1999-2000, in case of conversion of a proprietorship concern or a partnership firm into a company no capital gain shall arise if the following conditions are fulfilled :- Ltd company. The conversion done in year 2012, but the company did not convert the same in one of its property in Uttar Pradesh. Asst. Conversion of a sole proprietorship into a private limited company entails a “transfer” within the meaning of the Income Tax Act, 1961, as amended (Income Tax Act). Conversion of Firm under Part IX of the Companies Act, 1956 :-The firm may be converted into a company by following the provisions of Part IX of the Companies Act, 1956. Tax Benefits. Conversion of a partnership firm into a company is known as corporatization, which is the need of the hour. The State Government, on the other hand, argued that the present case is not a case of mere change of name, but rather a case of conversion of public limited company to private limited company; hence, stamp duty is chargeable under section 3 of the Indian Stamp Act, 1899.