iPleaders Forum – Your Home for Law Related Questions & Answers!

conversion of sole propritery to partnership fir,  


A is having medical shop which is running succesful. due to age factor he wanat to convert that medical shop in to partnership firm so it will increase man power.
In this cse profit sharing is 50-50 %
Question is how capital introdution of other person is calculated?
whether he will introduce half of the stock value as capital?
whether he will pay half stock value to the first partner?



Firstly you need to prepare a partnership deed and file Form A of Registration of Partnership Firm with the registrar. Form A contains all procedure and information to be provided from your side. The capital amount will be calculated on the basis of investment made by each partner.


Actually the introduction of capital or the equivalence of stock with capital has to be governed by the negotiation deals between you and your partner and that has to be mentioned in the partnership deed as well.

As this is a running business therefore may your future partner is although in a dominant role therefore please suggesting you to take the help of a Lawyer to draft the partnership agreement in detail and register it. You may apply for LLP registration, as it will be much preferable than the Partnership Act, 1932.

Pradipta Nath


You can read the sole proprietorship registration process along with the conversion process to the partnership firm registration in delhi. registering a partnership firm is not necessary and in sole proprietorship the person runs the company on his name.

Read For details of pvt ltd, OPC, LLP company registration.


Proprietory concern may convert into Partnership business.  You can negotiate with your partner for investment and accordingly the assets and liabilities shared in partnership. so contact a CA/expert Advocate having knowledge for getting the deed drafted.  Form.A and Partnersip deed have to be filed before the Registrar of Firms and get it registered under I.P.Act, 1932.  



Starting a business as a sole proprietorship is a very good idea. However, when you desire to raise the scale of your business then conversion of sole proprietary to partnership firm can really prove to be the perfect option. If you desire to get your business converted into partnership firm make sure to connect with the experts at Registrationwala.


Please Login or Register