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● Limited Liability: Breathe a sigh of relief knowing your personal assets are shielded from the company’s financial obligations. The PLC becomes a separate legal entity, protecting your personal wealth.
● Professional Image: Elevate your business stature with the formal structure and governance framework of a PLC. This fosters trust and opens doors to new opportunities.
● Capital Infusion: Attract a wider pool of investors with the legal and organisational transparency of a PLC. Secure the funding you need to fuel your growth aspirations.
● Operational Continuity: Transition seamlessly, retaining existing contracts, licenses, and employee relationships. Minimise disruption and maintain momentum during the conversion process.
Before embarking on this transformative journey, ensure your partnership meets the criteria:
● Registered Partnership: Your partnership must be legally established under the Indian Partnership Act, 1932.
● Committed Partners: At least two partners must wholeheartedly embrace the conversion, becoming shareholders and directors in the PLC.
● Financial Cleanliness: No outstanding legal disputes or secured creditor concerns should burden the partnership.
● Partnership Deed: If your partnership has a formal deed, it should explicitly allow for conversion
The transition to a PLC unlocks a robust framework for sustainable success:
CCA understands the intricacies of navigating the conversion process. We offer expert guidance at every stage:
1. Partners’ Consent: Secure written approval from all partners, ensuring a unified front for this strategic move.
2. Name Reservation: Find the perfect name for your PLC and obtain approval from the Registrar of Companies (ROC).
3. Board Resolution: Formally document the partners’ decision to convert through a resolution at a dedicated meeting.
4. MoA & AoA Drafting: Craft the Memorandum of Association (MoA) and Articles of Association (AoA) – the fundamental documents defining your PLC.
5. Incorporation Documents: Compile and submit the required documents, including MoA, AoA, PAN details, and business continuity plans, to the ROC.
6. Liabilities Settlement: Obtain No Objection Certificates (NOCs) from secured creditors, ensuring a clean slate for your PLC.
7. Registration Completion: Upon receiving the Certificate of Incorporation, your PLC officially commences operations with a robust legal foundation.
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The process involves obtaining approval from the partners of the partnership firm, incorporating a private limited company, transferring assets and liabilities, and complying with legal requirements for conversion.
Reasons may include limited liability protection, enhanced credibility, easier access to funding, scalability, and tax benefits associated with corporate structures.
The conversion must comply with the provisions of the Indian Partnership Act, 1932, and the Companies Act, 2013, and involve obtaining necessary approvals from regulatory authorities, filing required documents, and paying prescribed fees.
Yes, most partnership firms can be converted, subject to compliance with legal requirements, eligibility criteria, and assessment of business viability.
Documents such as incorporation documents, asset transfer agreements, partnership deed, dissolution deed, board resolutions, special resolutions, and necessary forms for filing with the RoC are required.
The process must be completed within a specified timeline, as per the requirements of the Indian Partnership Act, 1932, the Companies Act, 2013, and any applicable regulations.
Non-compliance may lead to rejection of conversion by regulatory authorities, penalties imposed by the RoC, and adverse impact on the business's legal status and operations.
Yes, Avenue Advisory provides expert assistance for conversion, including assessing eligibility, preparing documents, filing
Avenue Advisory ensures compliance with the conversion procedure by guiding clients through the process, preparing accurate documents, and liaising with regulatory authorities for approvals.
Avenue Advisory ensures compliance with the conversion procedure by guiding clients through the process, preparing accurate documents, and liaising with regulatory authorities for approvals.
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