The firm who wants to convert into company may be converted into a company by following the provisions of Part I of the Companies Act, 1956. For the purpose of Part I Company limited by shares, a joint stock company means a company having a permanent paid upshare capital of fixed amount divided into fixed amount of shares or held and transferable as stock, or both, to be held only by its members and no other persons. Such a company, when registered with limited liability under the Companies Act, 1956 shall be deemed to be a company limited by shares.
A company cannot be registered under part I unless the asset of not less than 3/4th majority of its members (present/proxy) at a general meeting summoned for this purpose is obtained.
