Conversion of sole proprietorship into partnership

FOR CONVERTING SOLE PROPRIETAERYSHIP TO LLP IN iNDIA REFER THE FOLLOWING WEBSITE: WWW.lEGALWIZ.IN/PROPRIETARYSHIP TO-LLP

LLP is more preferable than a partnership as liability is limited in an LLP whereas in a partnership there is unlimited liability.

Thank you Firdosh Sir. But one more issue ibothering me is about the tax liablity that will arise to the proprietor. As the said conversation is not subject to sec 47of Income Tax Act and trasnfer of capital asset to firm as capital brought in by partner would attract capital gain in the hands of partner who was earlier sole proprietor. kindly advise what to do in such a senerio. 

As far as capital gains are concerned you must be aware that the law is amended and the capital gains tax is reduced from 3 yrs to 2 yrs. The capital gains, if any, can be invested in the National Security bonds. However, since this is a business asset this provision may not apply and for that you may consult your tax consultant regarding the transfer of asset to partnership firm.

Secured Loans can be transferred only after obtaining NOCs from lenders.
First of all form the partnership or LLP and thereafter transfer all the assets and liabilities in the name of the partnership firm or LLP.
It can be a slump sale agreement.
U will have to see the impact of taxation.

Thank you Firdosh Kasam Sir

Law Aspire : if we consider it as slum sale then according to me Income tax shall be charged. Kindly advise as to whether we need  to draft a trasnfer deed or we can do that through incorporating a clause in partnership deed/LLP Agreement.

They are wholly owned companies, engaged in a variety of government projects to provide a variety of skilled and semi-skilled labor essay help. The only owner wants to turn the concern into a partnership or llp, both of which are easy and convenient.

Hi,

Apply for an employer identification number (EIN) to use in business transactions. You need this number to get a bank account in the partnership's name and to hire employees. When applying for the EIN, confirm that the number is for a partnership.

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Originally posted by : S.Murugappan
	Hi, Apply for an employer identification number (EIN) to use in business transactions. You need this number to get a bank account in the partnership's name and to hire employees. When applying for the EIN, confirm that the number is for a partnership.   Income Tax Calculator | Tax Lawyer | Import Procedure | Legal Advice

From which authority EIN needs to be obtained. kindly clarify