Question ID : 41091

CONVERSION OF PROPRIETORSHIP INTO PARTNERSHIP OR MERGE BOTH PROPRIETORSHIP FIRMS

Hi all, I am into Practice from 2013 in proprietorship concern having firm name registered with ICAI. There is another existing Proprietorship firm registered in the year 2017. Now we want to join together and practice under one firm name with 2 Partners. Since my Firm 2013 is already empaneled for statutory bank audit. Please Guide us How can we convert our proprietorship firms into partnership and under which Firm name either firm that is established in 2013 or 2017, so it does not effect empanelment of MEF and experience of 2013 Firm? Also please guide Whether 2017 firm has to dissolve its proprietorship concern to become partner in 2013 firm or it can become partner without dissolving and later on get merge its proprietorship to that partnership firm formed?

If new partnership firm will be formed without changing name of the firm established in 2013, experience of that proprietorship firm will be counted for NEF empanelment. Also, 2017 firm can become partner without dissolving his proprietorship firm, but he will not be eligible for MEF empanelment for his proprietorship firm, as he is not fully associated with his firm.