Conversion of partnership firm into pvt company

Sunitha,

The very simple process to convert the partnership firm into a company is that you should incorporate a new company in jurisdiction of karnatka ROC and take over the entire business of firm within its main objects i.e. show your main objects as taking over the business of a running partnership firm. Now you have to calculate the net consideration of the firm. Pay the net consideration amount by cheque of issuing of shares in the new company and run the business of a firm as a company. i think that is the appropriate way to convert the partnership firm into a company.

Experts views are prefrable.

Regards

Love Kumar

Hi Kumar,

What will tax implications be if your method of taking over is followed?

Will the net consideration be taxable? or the purchase of assets be taxable in the hands of partnership / Company?

Regards,

Jhumer