The process would involve dissolution of the partnership firm and suitably amending the incorporation of the private ltd. company to take over the assets and liabilities of the partnership firm. But confining the answer to the human aspect, it needs to be decided whether there is going to be continuity in service or not. The better course to avoid all future complications would be to make clean beginning by making full and final settlement of all service claim of all the employees with regard to the partnership firm and start afresh in the private limited company as fresh entrants, with new offer of appointment, probation etc. The alternative providing for continuity could be by issuing a new order by the Private limited company specifying the terms of service like continuing the service agreement bond with the partnership firm, other weightage for past service etc. Take acceptance of the transfer terms by the employees under transfer to the private ltd. company. The terms could be as decided by the new company and there is no hard and fast rule in this regard.