Convert a Proprietorship to a Partnership

Convert a Proprietorship to a Partnership after GST Implementation

In this case, you must first enter a company signature. After this, request the PAN and TAN number from the Income Tax department.

After PAN, arrange for a document to prove the address of the company as mentioned in the company’s deed and proof of address for a place of business (in case it is different from another).

You want to Register New Firm?

After this, go to the bank and open a current account of the company.

Convert a Proprietorship to a Partnership

After all the above documents, obtain the registration number under GST for this company’s signature.

Begin to invoice at the signing of the Alliance from a mutually agreed upon date between the partners after the company’s deed has been written.

Now, finally, in a proprietary company, present all GST refunds and pay the outstanding taxes.

Once all the tax payments have been paid, request the cancellation of the GST number for the following reasons:

“Change in the legal structure of the company”.

According to Annex 2 of the CGST / SGST Law, there is no need to pay taxes on the sale of shares where those shares passed from an existing firm to a new one (subject to the restructuring of the company) subject to the condition that the company existing is no longer the passive subject after said restructuring.