Question

conversion of partnership into limited company is referred to which of partnership business to a joint stock company​

Answer 1

ADVERTISEMENTS: Often, a partnership firm converts itself into a joint stock limited company or sells its business to an existing one. Realisation Account will be opened and assets transferred to it, so also liabilities (but not if liabilities are not assumed by the company).

Answer 2

Answer:

It refers to part IX Conversion,

A partnership with seven or more partners that is registered under the Partnership Act may be transformed into a company.

Explanation:

Conversion to Part IX

• Following the steps under Part IX of the Companies Act, often known as Part IX Conversion, a partnership with seven or more partners that is registered under the Partnership Act may be transformed into a company.
• The partnership might gain the advantages of a company by changing from a firm to a company.
• If the partnership firm has the tangible property listed in the firm's ownership, this technique is preferred. Such immovable property is automatically transferred to the new business as a result of Part IX conversion, and no stamp duty is required for this asset transfer.

Firm conversion under Part IX of the Companies Act,

1956: By adhering to Part IX's rules, the firm may be transformed into a company.

The Companies Act of 1956's Sections 565 to 581 deal with the transformation of firms into companies.

In the event that such a company registers with limited liability under the Companies Act of 1956, it will be regarded as a company limited by shares.

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