Partnership Firm Registration
Conversion of a Partnership Firm into a Limited Company
The company may
acquire the assets and liabilities of any running business, which may belong to
an individual, or to a sole proprietary concern, or to a partnership firm, or
for that matter, to an limited company, in accordance with the terms and
conditions of an agreement that may be entered into by and between the company
and the seller(s) of the existing business Partnership Firm Registration Kerala.
Such an
agreement may be made, before the incorporation of the company, by the
promoters of the company with the seller of the business, which, on
incorporation, may be ratified by the company through its authorised agent or
representative. However, the promoters are duty bound to ensure that such pre-
incorporation agreements are fair and in the interest of the company, and if
the promoters make any profit or take any undue advantage from such agreements,
they are liable to compensate the company to the extent the company suffers any
loss Partnership Firm Registration Kerala.
If a particular partnership firm has the required number of persons, who may form a limited company as per the requirements of the Companies Act, they may become subscribers to the memorandum and also the promoters of the company. The assets and liabilities of the firm can be taken over by the company on incorporation on the basis of their valuation done by experts and the promoters or the erstwhile partners of the firm are allotted shares in the company according to the value of their shares in the firm Partnership Firm Registration Kerala.
