Proprietorship Firm To Private Limited Company – Tax Portal

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Proprietorship Firm To Private Limited Company

Home Proprietorship Firm To Private Limited Company

Conversion of Sole Proprietor to Private Limited Company

Many business people start their businesses as a Sole Proprietorship due to the low compliance requirements. As the business and the incomes grow, 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.
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Documents Required For Conversion

Passport size photograph of Directors

Copy of Aadhaar Card/ Voter identity card

Copy of Property papers (If owned property)

Copy of PAN Card of Directors

Copy of Rent agreement(If rented property) Electricity/ Water bill (Business Place)

Landlord NOC (Format will be provided)

Minimum Requirements for Conversion

Minimum 2 Shareholders for Private Limited Company Registration
Minimum 2 Directors
Minimum Rs.1 Lac Share Capital
DIN for all Directors

Procedure for Conversion of Private Limited Company to Public Limited Company

  • 01

    Complete our Simple Form

    You are required to fill the details in our simple questionnaire and submit documents
  • 02

    Obtain DSC and DIN. from us

    After submitting your documents we will provide you with DSC and DPIN.
  • 03

    Verification and Name Approval

    For further procedures, details provided by you will be verified by our experts.
  • 04

    Document Submission

    We will create your documents and application and file them with ROC.
  • 05

    Your work is completed

    Once your company is incorporation, we send you all the documents and DSCs.

Conditions for Conversion

01.
All the assets and the liability of the Sole Proprietory concern relating to the business immediately before the succession become the assets and the liability of the company.
02.
The shareholding of the sole proprietor in the private limited company is not less than 50% of the total voting power in the company and his shareholding continues to remain so for a time period of 5 years from the date of the succession.
03.
The sole proprietor does not receive any benefit or consideration, directly or indirectly, in any form or manner, other than by way of allotment of shares in the company.

FAQ's

Yes, you need a minimum of two Directors for a private limited company. If you are the sole owner, you can register as a

Any individual/organization can become the member of the private limited company including foreigners/NRI.

The entire procedure is 100% online and you don’t have to be present at our office or any other office for closure of proprietorship & incorporation of private limited. A scanned copy of documents has to be sent via mail.

here is absolutely no other payment. We will send you an invoice that is all-inclusive, with no hidden charges.

Yes, an NRI or Foreign National can become a Director in a Private Limited Company on acquiring DIN. However, at least one Director on the Board of Directors must be a Resident of India.

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