Coversion into Private limited compnay

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Samir

Samir (Querist)
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12 February 2010 Is it compulsory to have 7 partner to covert a partnership firm into private limited company?

Jagruti (CS)

Jagruti (CS) (Expert)
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12 February 2010 No, for private Company minimum 2 partners should be there while in public Company 7 partners are required.

CA Nidhi Sancheti

CA Nidhi Sancheti (Expert)
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12 February 2010 In a private company there should be minimum two directors and minimum two shareholders. So its not compulsory to have 7 partners.

Samir

Samir (Querist)
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15 February 2010 Thanks for the reply.can anyone send the process for converting partnership firm into Private limited company.My email id samirambavi@gmail.com

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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17 February 2010 your query has not been understood by the persons who have answered. There is no compulsion for a firm having 7 partners. It is at the discreation of the firm whether or not to convert into a company.
When the number of partners of a firm carrying on non-banking business exceed 20, and in case of banking business exceed 10, then such firm becomes an illegal company. In this case, the firm has to get converted into a company.

The procedure of converting is that first the partners shall register a company and then the company shall take over the business of the firm. In case you need further help, you can write at amolgkabra@gmail.com