explanation the conversion of partnership firm into a private or public company
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Answer:
1.Before a conversion of a partnership firm into a private limited company or public limited company. They decide the conversion in following factors.
(a) Whether the company into which the partnership firm will be converted. It will form a private limited company or public limited company.
(b) Whether the partnership firm will be converted into a company by forming a new company. A new company will be formed and then admitted as a partner of an existing partnership firm.
(c) The deduction of tax under the income tax act 1961.
2. If you want to conversion a partnership firm into a company by way of forming a new company then you can:
(a) Make all the partners of your partnership firm become the subscribers to the note of the association. There are only shareholders of the new company.
(b) To form a new company and admit the new company as one of the partners of your existing partnership firm.
3. To form a new company follow the procedure is given under section( 7) of the companies act 2013.