Article explains Steps to be followed for Conversion of Proprietorship concern into Partnership Firm, Steps for transferring unutilised ITC to the partnership firm from proprietorship, Documents required for incorporating a partnership firm and Documents required for Certificate of Registration of Partnership.
1. Drafting of Partnership Deed (It Includes the Declaration about Conversion)
2. Filing of Returns by Proprietorship & Partnership Firm
3. The taxpayer has to select the date from which the registration of proprietorship is to be cancelled and new GST registration of Partnership is applied. The taxpayer has to make sure that both the above dates are the same, and this will be the effective date for GST registration of partnership.
4. Therefore, the proprietorship entity has to file all GST returns till the new GST registration date and pay all the pending dues. The partnership firm has to start filing the GST returns from the date of new GST registration.
5. Apply for GSTIN & PAN of Partnership and then open Current Bank A/c
6. Transfer of Business to Partnership Firm
7. Transfer of Unutilized ITC to partnership- After completing the filing of the pending returns, the taxpayer can transfer the unutilised ITC to the partnership firm.
8. Cancellation of GSTIN of Proprietorship – File GST REG 16 citing reason “Changing the company’s legal framework” and put New GST of partnership.
1. Business proof – Electricity Bill/ Telephone Bill of the registered office address
2. ID Proof
3. Details about the sole Proprietors Business
If the proprietorship firm is licensed under GST or any other registrations obtained, forms need to be submitted to the concerned departments for change of status of the business
4. Statement of assets and liabilities- Updated statement of assets and liabilities certified by a CA.
The documents required to be submitted to Registrar for registration of a Partnership Firm are:
1. Application for registration of partnership (Form 1)
2. Certified original copy of Partnership Deed.
3. Specimen of an affidavit certifying all the details mentioned in the partnership deed and documents are correct.
4. PAN Card and address proof of the partners.
5. Proof of principal place of business of the firm (ownership documents or rental/lease agreement).
If the registrar is satisfied with the documents, he will register the firm in the Register of Firms and issue a Certificate of Registration.
Register of Firms contains up-to-date information on all firms and can be viewed by anybody upon payment of certain fees.