Practice Areas · Compliance · Changes & Conversions · Entity conversions · Proprietorship → partnership
Proprietorship to Partnership Firm
Bring in a partner — convert your proprietorship into a partnership firm with a proper deed.
Converting to a partnership
When a proprietor wants to bring in a partner to share capital, skills, or responsibility, the proprietorship is converted into a partnership firm governed by a partnership deed.
The firm drafts the deed, obtains the firm's PAN and registrations, and transfers the business and registrations from the proprietor to the firm.
How conversion works
- 01
Agree terms
Decide the partners, capital, and profit-sharing.
- 02
Draft the deed
Prepare and execute the partnership deed on stamp paper.
- 03
Firm PAN & registrations
Obtain the firm's PAN and migrate GST, licences, and the bank account.
- 04
Transfer the business
Transfer the proprietorship's assets to the firm and close the proprietorship's registrations.
Why work with PBT
PBT brings your partner in on a sound footing.
- A clear deed covering capital, profit-sharing, and exit
- Firm PAN, Registrar-of-Firms registration, and GST migration
- A clean transfer of the business and registrations
- Advice on whether an LLP would serve you better
- Scope, deliverables, and fees agreed in writing up front
Frequently asked questions
Should I convert to a partnership or an LLP?
A partnership is simpler but carries unlimited liability; an LLP adds limited liability and a separate legal entity. We advise based on your plans.
Does the firm need a new PAN?
Yes. The firm is a separate assessee and obtains its own PAN; the proprietor's PAN stays personal.
How long does it take?
The deed can be executed quickly; the firm's PAN, registration, and GST migration typically take a couple of weeks.
Convert to a partnership firm
Tell us about your incoming partner, and we'll draft the deed and migrate the business.
Send an enquiryThis page describes the nature of the firm's services and is not a solicitation or legal advice. Thresholds, timelines, and applicable registrations depend on your specific facts; engagement terms and fees are agreed in writing per assignment.