1. Legal Provision for Conversion

• Indian law allows conversion under Section 366 of the Companies Act, 2013
  
• The firm must have at least two partners willing to become directors
  
• The new company must be registered with the Ministry of Corporate Affairs (MCA)
  
• The conversion gives the new company a separate legal identity
  
• It helps shift from an unincorporated to an incorporated structure
  

2. Basic Requirements for Conversion

• The partnership firm must have at least seven members if converting under Section 366
  
• The firm must have a valid PAN, business licenses, and accounts
  
• Consent of all existing partners is mandatory
  
• Digital Signature Certificates (DSCs) and Director Identification Numbers (DINs) are required for directors
  
• A No Objection Certificate from creditors may be needed
  

3. Step-by-Step Conversion Process

• Name approval must be obtained from the Registrar of Companies
  
• Prepare incorporation documents, including Memorandum and Articles of Association
  
• File necessary forms such as URC-1 and SPICe+ on the MCA portal
  
• Submit all supporting documents, includingthe  partnership deed and financials
  
• On approval, the Certificate of Incorporation is issued in the new name
  

4. Effect of Conversion

• The private limited company inherits all assets, liabilities, and contracts of the firm
  
• The partnership firm ceases to exist from the date of incorporation
  
• Business continues without interruption under the new company structure
  
• The company is now governed by the Companies Act, 2013
  
• All statutory requirements, like board meetings and annual filings, must be followed
  

5. Post-Conversion Actions

• Inform banks, vendors, and clients about the new company name
  
• Update PAN, GST, and other registrations under the company
  
• Amend or reissue contracts and licenses where necessary
  
• Notify the Registrar of Firms about the conversion, if previously registered
  

Maintain records and accounts as per company law regulations