Dear Sir,

1.Things to keep in mind before the takeover are as follows:

The business of the partnership firm can be taken over by Private limited company or by another partnership firm, the assets and liabilities of the firm can be transfer on payment of consideration & on payment of stamp duty.

The directors and shareholders of the private company are not personally liable for the liabilities of the company. Shareholders have limited liability and are responsible only to the extent of their share in the company.

A private limited company can acquire the existing partnership firm with the assets and liabilities. It is to be done carefully in view of the rights of the creditors of the existing partnership firm.

Things to consider

Check either MOA of the company empowered it or not.

Consent of all partners obtained or not.

If Firm O is taking only business then it's no need to change anything about it.

If Firm O is taking business along with Name, trademark, logo etc. then you need to apply for New PAN and GST. 

Otherwise you mention details in the contract agreement between two firms terms and conditions accordingly.

If it's a new entity then yes otherwise no need. 

It's a long Procedure of take over and all aspects need to be inspected and investigated in case of both the firms. 

Partnerships are simply abstract legal relationships formed between partners. According to Section 4 of the Indian Partnership Act, a partnership is a relationship between individuals who are willing to share the profits of a business carried on by all or by one of them on behalf of all. An agreement between at least two people results in a partnership. Every partner in a firm acts as an agent for the firm, as well as for each other. The firm's property consists of the "Joint Estate" of all the partners. Lawfully, it belongs to no one other than its members. Shares in a partnership can't be transferred to another individual or partner without the consent of all partners. A partnership is formed for the purpose of running a business and earning a profit.

Taking over another firm requires a strong resolution. Two firms of the same partners are two separate entities, despite the fact that they are partners. A "transfer" occurs when one firm transfers its assets to another firm.

a) Is it required for the new firm to apply for a new PAN and GST to run the Business?

When applying for PAN and GST, it's important to know under what name the firm conducts business. An old firm name can be used for the business, so there is no need to take out a new PAN or GST.

b) What all should I keep in mind before the takeover?

• The dissolution or takeover of a partnership can be accomplished with the consent of all partners or based on a contract between partners.
• A takeover agreement should be signed by all partners of both firms.
• Assets and liabilities, as well as profit sharing among partners, should be clearly defined.

- If any firm carries on business without registering under GST, it will be an offence under GST and heavy penalties will apply. 

- Further , For certain businesses, registration under GST is mandatory

- Since the firm N is taking over business , hence a new PAN and GST are required to run the business on its name.