Accountancy, asked by kamaleshseervi58, 10 months ago

Give any two reasons for conversion of firm into a limited company

Answers

Answered by Alcaa
3

THE REASONS FOR CONVERSION OF FIRM INTO A LIMITED COMPANY ARE MANY :-

the proper legal structure , limited liability , the aid from the government , a proper legal structure is proper registration of the limited company .

Explanation:

THE SPECIFIC TWO REASONS FOR CONVERSION OF FIRM INTO A LIMITED COMPANY ARE AS FOLLOWS : -

  1. immovable property can be transferred by transferring the shares as a result the long methods of stamp duty and other complioances can be easily avoided .
  2. the partners will not change their shareholding pattern for a period of 5 yaers from the date of conversion .
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