My client is the partner in the partnership firm and also a director in a private limited company. Both the businesses are having the same business and object and are running very well. Now he wants to merge partnership firm and company in the new LLP (have to incorporate a new LLP). My questions are as follows:
1. What should I do from the following:
a. First incorporate a new LLP first with the main object clause to take over the business of firm and company or,
b. First converting firm into company and after that new LLP can be incorporated to take over a company.
2. As per section 565, for conversion of firm into company at least 7 partners are required but in my client’s firm there are only 2 partners. So how can I comply with the section 565?
3. Detailed procedure for the option suggested.