Most of the persons start their business as sole proprietor due to less compliance requirements but due to growth in the business, sole proprietor needs a separate business account for their business transactions. The best way to complete all these requirements is to convert sole proprietorship into a private limited company.
In order to convert a sole proprietor ship firm into a private limited company, business owner needs to incorporate a new fresh private limited company by entering into an agreement. The promoters of the company indulge themselves into an agreement for the main objective of selling the business. Business owner must mention about this takeover as one of the objectives in memorandum of association (MOA).
What Is Included In Our Package?
Minimum Requirements For Converting A Proprietorship Firm Into A Private Limited Company
- Minimum 2 directors
- Minimum 2 shareholders for registration of a private limited company.
- Minimum Rs.1 Lakh share capital.
- DIN (Director Identification number) for all directors.
- Business owner should mention “Takeover of sole proprietorship concern” as one of the objectives in Memorandum of association.
Documents Required In Converting Sole Proprietorship Into A Private Limited Company
- Latest photograph of all directors & shareholders
- PAN card copy of directors & shareholders (Passport in case of foreign nationals)
- Address proof of all directors & shareholders (Aadhar card and Voter id/passport/driving license)
- Address proof of registered office (electricity bill/telephone bill of the registered office)
- Non-objection certificate (NOC) from the owner of the registered office
- Rent agreement of the registered office (If office is situated at a rented place)
- Income tax return acknowledgement by the sole proprietor
Benefits of Converting Proprietorship Firm Into A Private Limited Company
Procedure of Converting Proprietorship Into A Private Limited Company
Sole Proprietorship to Private Limited Company FAQ’S
- Separate legal entity
- Limited liability
- Easy transferability
- Continuous existence