CONVERSION OF PROPRIETORSHIP TO PRIVATE LIMITED COMPANY




Grow your business by converting Proprietorship to Private Limited Company.



Starting at :₹13999 (all inclusive)




09599937963,7906012752





CONVERSION OF PROPRIETORSHIP TO PRIVATE LIMITED

Definition Advantages Procedure Documents FAQs


CONVERSION OF PROPRIETORSHIP TO PRIVATE LIMITED


Starting a business as a Sole Proprietorship is a common practice by most of the people due to low compliance requirements. But with the increase in business and growth in income , there is a need to separate the bank accounts and the tax filings of the Sole Proprietor and that of the business. To accomplish this separation a possible solution is to convert the Sole Proprietorship into a Private Limited Company.

To convert a Sole Proprietorship into a Private Limited Company, an agreement has to be executed between the Proprietorship and the Private Limited Company (once it is incorporated) for the sale of the business. Further, such Private Limited Company so incorporated must have “the takeover of a Sole Proprietorship Concern” as one of the objectives in its Memorandum of Association.





Benefits Of Converting into Private Limited Company



EASE OF FORMATION A Private Limited Company can be easily registered and is easy to manage and run.
SEPARATE LEGAL ENTITY The biggest advantage of a Private Limited Company is that its identity is distinct from that of its members. A company is a separate person having its own rights & Obligations which ultimately limits the liability of members.
PERPETUAL SUCCESSION In case of death of the owner or transfer of shares, your business won’t get affected. There will be no effect on firm’s continuance.
LIMITED LIABILITY The greatest benefit of Private Limited Company is limited liability. If any liability arise then its member is not personally affected; members are only liable for unpaid shares held by them and not more than that. Stakeholders are not liable for corporate debts and liabilities.
GREATER FLEXIBILITY A Private Limited Company is required to perform lesser legal formalities as compared to a Public Limited Company. It enjoys special exemptions and privileges under the company law. Therefore, in Private Limited Company, less number of compliance is required.
SECRECY A Private Limited Company is not required to publish its accounts or file several documents. Therefore, it is in a better position than a public company to maintain business secrets.
INVESTMENT Private limited companies easily accommodate equity funding as there is a clear distinction between shareholders and directors as well as limited liability. In fact, venture capitalists and private equity funds prefer to invest in this structure.
TRANSPARENCEY Private Limited Company enjoys enhanced transparency thus able to win the trust of general public.




Company Registration Process




1

Obtaining DSC & DIN

2

Name Approval

3

Drafting MOA And AOA Electronically

4

Company Registration













Digital Signature Certificate(DSC) and Director Identification Number(DIN) is required for the proposed Directors of the Private Limited Company which is necessary to file the company registration documents. For this, you will only need to provide a few scanned documents and details; our representatives will fill the form and submit it online. DIN and DSC can be obtained for the proposed Directors within 1 to 2 days.




Documents required for Private Limited Company incorporation






Self Attested PAN Card copy of Directors


Self Attested copy of any one of the Identity Proof(Voter's ID/Passport/Driver's License)


Self Attested copy of Address Proof in the name of director (Any utility bill i.e., mobile bill/water bill/ electricity bill, or bank statement which should not be older than two months)


Passport-sized photograph of the Directors


Rent Agreement (Notarised: For rented property)


Sale Deed/Property Deed in English (in case of owned property)


No-objection Certificate from property owner


Latest Electricity Bill / Mobile or Telephone Bill / Latest Bank Statement/Gas Bill




Frequently Asked Questions





For how long can I run the Sole Proprietorship in existence with the nely formed Private Limited Company?
The proprietorship must be closed within three months of incorporating of the Private Limited Company.

Are the assets of Sole proprietorship transferred to the Private Limited Company?
The assets of proprietorship can be converted into capital for the Private Limited Company, via the making of resolutions and further contracts/agreements. Any debt owing to any creditors (including fines/penalties) will have to be settled before the transfer of such assets.

How does the funds are transferred from Proprietorship to Private Limited Company?
All banks accounts used for the sole-proprietorship need to be closed, and a new bank account under the Private Limited Company need to be opened. Naturally, all cheques and bank transfers need to be made in favour of the Private Limited Company henceforth.

Can I Transfer the licences and permits from Sole Proprietorship to Private Limited Company?
No. All licenses and permits must be re-applied under the Private Limited Company following necessary procedures to concerned authorities.

Is it necessary to have 2 directors in a Private Limited Company Registration?
Yes, you need a minimum of two Directors for a private limited company. If you are the sole owner, you can register as a One Person Company.

Who can be a member of a Private Limited Company?
Any individual/organization can become the member of the private limited company including foreigners/NRI.







START A BUSINESS


Private Limited Company
Limited Liability Partnership
One Person Company
Partnership Registration
Section 8 Company

MANAGE YOUR BUSINESS


GST Transition Filing
Annual Compliances for Pvt Co.
Annual Compliances for LLP's
Increase in Authorised Capital
TDS Return Filing

GOVT & TAX REGISTRATION


GST Registration
Trademark Registration
Copyright Registration
Importer Exporter Code
Digital Signature Registration