Incorporation

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HARJEET SINGH (Querist)
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23 November 2011 I have created a partnership firm and construction and installation of machinery is in process. Now I want to work as a Pvt Limited Company. What are the options I can go for ?
Should I convert partnership into company or incorporate a co having partnership firm as a director or member ?

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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23 November 2011 I Think Best Way Dissolve Firm.
Create New Company or Buy From Market.

Charu Srivastava

Charu Srivastava (Expert)
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24 November 2011 Form a Private Company and acquire the assets and liabilities of the running business of the partnership firm by entering an agreement.

The agreement may be made before the incorporation of the Company by the promoters of the Company and seller of the business, which on incorporation shall be ratified by the Company.

or

the partners of the firm can be become the subscribers to the Memorandum of Asoociatopn and also the promoter of the Company. The assets ad Liablities can be taken over by the Company.

HARJEET SINGH

HARJEET SINGH (Querist)
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24 November 2011 Dear Charu, if the partners become the promoters and assets and liabilities are taken over, is there any capital gain on that ?

CA Ayush Agarwal

CA Ayush Agarwal (Expert)
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26 November 2011 Actually I Not Suggested to Take Over Business of Firm and Form Company, Because There are Certain Conditions to Be Fulfilled in Sec 47 of Capital Gain to Claim Exemption from Capital Gain.

Best Way That i Suggested to u Before.

HARJEET SINGH

HARJEET SINGH (Querist)
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18 September 2012 Pv ltd company incorporated but the firm is still there. The partenr in the firm is one of the promoter of company. What shd to do now>

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