Procedure of converting partnership firm into a private limited company

As firms starts growing, they convert themself into a private limited

company(Benefits of Private Limited Company). The firm can be converted into a
private limited company by following the provisions of Part 9 of the Companies
Act, 1956.
You can get your firm registered into a private limited company in just 15 days by
spending only 7650(assuming authorized capital is 1lakh). Yes you heard it
right. Converting a partnership firm into a private limited company is not an
arduous task. Wonder how you are going to do that? Just follow the page till the
end and you will get answers to all your questions.
DAY(1-2):- Hold a meeting with the partners to discuss the following
business

You need >=3/4th of the members consent as present in person or where

proxies are allowed.(Say if you are 10 members then you need consent of
more than 5 members)
Authorize one or more partners to take all necessary future steps.(Say Mr
XYZ)
Execute a supplementary partnership deed to align it with the following
requirements:
1)-Minimum partners needed = 7.
2)-Take consent of all the partners. It can be done by a contract in writing.
3)-Stamp Cost:-Max 750.
Process completed:-5%
Process time:- 1-2 days
Cost incurred:-Max 750

DAY(3-7)-Application for Directors Identification Number(DIN) and

Digital Signatures Certificate(DSC)

Minimum 2 directors are required for a Private Limited Company.

DIN process is online so dont worry. Simply go to
http://www.mca.gov.in/MCA21?Din.html and fill details like
1. Name(s)
2. Fathers Name(s)
3. Permanent Residential Address(s)
4. Present Residential Address(s)
5. Occupation
6. Name of the Companies in which the promoter is Director/Promoter
7. Date of Birth
8. E-mail IDs(Minimum 2)
Pay 500 online as fee.
Obtain Digital Signature certificate from the prescribed
authorities(Details)
Documents required for Digital Certificate:
1. Copy of Passport
2. Voter ID
3. Ration Card
4. Driving License

5. PAN Card
6. Telephone Bill
7. Electricity Bill
8. Bank Statement
Promoter(s) needs to sign the application
Fees:- 1500-2000 with 2 years validity.
Process completion:-30%
Process time:-5-6 days
Cost Incurred:- 2000-2500

DAY(9-14):-NAME APPROVAL

Fill Form No. 1A with the Registrar of Companies(ROC) with following

annexures.
1. Certified true copy of
a)-Partnership Deed
b)-Latest balance sheet of the partnership
c)-Latest income tax assessment order/return
d)-Resolution passed by the firm in this regard
2. Consent of all the partners that they have agreed to register the
partnership firm as a company.(You need at least 2 private
promoters in a Private limited Company)
3. Digitally signed application(by one of the promoters).
Details to be filled.
1. Maximum 6 alternative companys names to be proposed(in order
of preference)
2. Authorized Capital of proposed Company(Min. paid up capital
needed =Rs 1Lakh)
3. Main objects of the proposed Company.
4. State of Registered Office of Company(eg.Uttar Pradesh,Rajasthan
etc)
5. Copy of Trade Mark Application/Certificate If name of proposed
company is based on a trade mark.
ROC fees:- 1000
ROC will inform you within 7 days, if the name is rejected then apply again
with new names.
Process completion:-60%
Process time:-Max 7 days.
Cost incurred:- 1000

DAY15:Registration of Company
Now you have your companys name, file following documents with
ROC( within 60 days from date of name approval).
1. Two sets of Memorandum and Articles of Association(AOA) of the
company with one set duly stamped.(Stamp Cost- 200 in Delhi on
MOA and 0.15% of Authorized capital on AOA)
2. Above Documents needs to be filled with basic details like Name,
Number of shares subscribed, signature etc in front of
professionals.

3. If director is foreigner and not present in India, then take his sign in
Indian Embassy located in his home country.
4. Form No 1:-Its a declaration to be executed on a non-judicial
stamp paper by one of the directors of the proposed company or
others like CA,CS,Advocates etc.
5. Form No 18: To be filled by one of the directors of the company
informing ROC, the registered office of proposed company.
6. Form No 32:- Its a form stating the fact of appointment of the
proposed directors on the board of directors from the date of
incorporation of the proposed company and is signed by one of the
proposed directors.
7. Power of attorney signed by all the subscribers of MOA authorizing
one of the subscribers or any other person to act on their behalf for
the purpose of incorporation and accepting the certificate of
incorporation.
8. Form No 37 along with Form No 39.
9. Declaration by two partners verifying the particulars in above
documents.
10.
Get Consent letters from Directors
11.
Filling fees:- 3200
12.
Other Information to be submitted:i) A list showing the names, addresses and occupations of all
members of company
with details of shares or stock held by
them.
ii) If the company is intended to be registered as a limited
company, a statement specifying the following particulars:
a) the nominal share capital of the company and the number of
shares into which it is divided or the amount of stock of which it consists
b) the number of shares taken and the amount paid of each
share
c) the name of the company, with the addition of the word
Limited or Private Limited as the case may be, as the last word / words, in
case the company is being registered with limited liability.

Hurray you are done with the registration. The registrar shall issue you a
certificate of incorporation.
Process completion:100%
Process time:-1 Day
Cost incurred:- 3400

Congratulation on becoming a Pvt Ltd Company.

Total Cost: 7650
Time:- 15 Days

If you have any doubts regarding any step then you can call us any
time.Our customer care executives will address you 24*7.
Dont have time to convert your partnership firm into pvt ltd company.
Dont worry we will do it for you.Contact our customer service
executives for more details.
Hope you enjoyed the session.