• 9051 NG-Associates Incorporate

Conversion of Proprietorship to Partnership

In a proprietorship firm, one person is the only owner of the business. All capital investment, risks, rewards, profits, losses, assets, liabilities, and assets belong to this one individual. Whereas, in Partnership firm, there are minimum two persons who may or may not be natural persons and where the share of each person (commonly called partner) capital investment, risks, rewards, profits, losses, assets, liabilities is pre-determined through an oral or written agreement. To convert the proprietorship firm into a Partnership firm, firstly, it is required to incorporate a partnership firm and then arrange for PAN, GST number, Bank accounts of the Partnership firm.