How to convert Partnership Firm into Private Company?

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A private limited company is a small business entity in which owner liability is limited to their share. Whereas a partnership firm is bound to have 50 or fewer shareholders and responsibilities are of course more. If the partners or a company wants to expand the company‘s development areas and Convert Partnership Firm into Private Company they need to dissolve the partnership.

Under  Indian laws and regulations, a firm has to follow some steps for the conversion or the Private Limited Company Registration. Here are a few steps for the conversion of a firm into a company. However, you can contact e-startup India directly, if you do not want to take the hassle of such legalities on your own.

5 Steps For Converting Partnership Firm Into A Private Company

Step One: Arrange A Meeting

If a firm wants to register itself as a private company first of all the partner should hold a meeting of all the partners for taking assent for this conversion. As the assent of the majority is important. Another important part is that the presence of three fourth members is a must. They should take a no-objection certificate from secured creditors of the firms. Everything must abide by the rules and laws.

Step Two: Assent For The Name Approval For The Proposed Company

Assessment of the proposed name is an important thing and crucial step. For this process, various attachments of notified documents are needed. It is proposed to be converted as per the laws of the companies act 366 to 376,2013.

Steps Three: An Advertisement Is Must In Two Newspapers English And Vernacular

Clause of section 374 says for the private limited company registration, under the provision of part one of chapter 21, it should publish a relevant advertisement. And that should be published in two newspapers about the registration. One advertisement in the main vernacular language newspapers of the district where the office is established and second must be in an English newspaper.

If anybody wants to take any objection, can take it within 21 days from the date of publication of the advertisement that will be a form of FORM No. URC-2.

Step Four: Affidavit

After no objection on advertisement of newspapers, a properly notarized affidavit from all the partners and necessary documentation should be produced in the event of registration of the firm into a private company. Proper papers should be submitted to the authority with whom it was registered earlier.

Step Five: Filling Necessary Form With Roc

Filling necessary forms with roc for the registration of a private company needs documents like MOA, AOA, etc. If the company is registered under the companies act, 2013, it has to attach necessary documents. Basic papers like Aadhar, PAN, or passport are required for the verification.

Next Steps After Registration

A registrar will register the company and allocate a certificate of incorporation. For the partnership firm registration, you need to have the following documents with you so that process goes easier.

These Are As Follows:

  • For din -passport/ PAN Card/ Aadhar card/ Signed photographs of the shareholders and directors.
  • Attachment of newspaper advertisement in the form.
  • Required documents for the submission of form URC-1.
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Documentation Needed To Convert Partnership Firm Into Private Company

For any kind of proper work of registration, proper documents and papers are always required as it gives a solid base to your work. For the conversion established the company basic papers are required that are as follows:

  • Voter id/ Passport/ Driving license of shareholders and directors as id proof.
  • Telephone bills, electricity bill as address proof.
  • Certified copy of the latest audited financial proof.
  • Certified copy of income tax return.
  • Copy of partnership deed.

What are the advantages Of Conversions Of The Partnership Firm Into Pvt. LTD. Company?

Yes, this is very important to know why one should want to convert the firm into a private company. If a company is firmly established then it can get the following benefits:

  • Easy to get funds from the banks and finance companies for the expansion of the company development.
  • Free from the stamp duty on the transfer of property.
  • Limited liability of the partnership rather than the firm owner.
  • Increase the economic base of the company.
  • Easy transferability of the shares.


For anyone who wants to expand their small and medium institutions into a large company, conversion into a private company is a very good option for them. Following the above-given steps, you can convert partnership firm into private company. However, if you face any problem, or just want to convert your partnership company into a private company, reach us now. The team of experienced e-startup India can assist you with all the legalities required towards getting a private ltd company.

Difference Between OPC and Private Limited Company

Also, require any other guidance with respect to Company Formation, please feel free to contact our business advisors at 8881-069-069.

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