A solo founder choosing between OPC and Private Limited
One founder wants limited liability and wonders which structure fits the plan.
Read the scenario →Illustrative example
Moving a partnership firm into a company
Two partners want to bring in outside capital and need a structure investors accept.
Scenario type: Two partner trading firm. This is a hypothetical example, not a real client.
The situation
A partnership firm has grown and the partners want to raise funds and add a manager with equity. The firm structure makes that difficult.
The challenges
- Assets, contracts, and licences sit in the firm's name
- Existing customers and banks need to be informed
- Tax and registration consequences need planning
How it is typically handled
- 1Choose the appropriate route for moving the business into a company
- 2Incorporate the company and obtain new registrations
- 3Transfer contracts, licences, and accounts in an orderly sequence
- 4Communicate the change to customers, suppliers, and banks
What a good outcome looks like
The business continues without a gap in trading, and the new company can issue shares to a manager or investor.
Key takeaways
- Plan the transfer of licences and contracts before you switch
- Tell counterparties early
- Check the tax treatment before acting
This scenario is general information for illustration. Rules, thresholds and deadlines change and depend on your facts, so confirm the position for your own situation with a qualified professional.
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