As a business grows, the demands of business and the drawbacks of a proprietorship firm could force an entrepreneur to start the process for conversion of proprietorship into private limited company. A private limited company offers significant advantages over the proprietorship form of business, including that of limited liability, ability to attract equity capital, continued existence and more. In this article, we look at the requirement and procedure for conversion of proprietorship into a private limited company.
- First, you will have to incorporate a new Private Limited company, indicating that the company is to take over the business of the sole proprietorship/LLP, as well as the effective transition date.
- Next, all business assets will have to be formally transferred to the newly incorporated Private Limited company, including the novation of existing contracts of the old business.
- Finally, the sole proprietorship/LLP is to be terminated and ACRA is to be informed that you have ceased to carry on business as a sole proprietorship/LLP and now.
Minimum Requirements for Conversion
Procedure For Conversion
- Complete our Simple Form - You are required to fill the details in our simple questionnaire and submit documents. Here : Conversion of Proprietorship into Private Limited
- Obtain DSC and DIN from us - After submitting your documents we will provide you with DSC and DPIN.
- Verification and Name Approval - For further procedures, details provided by you will be verified by our experts.
- Document Submission - We will create your documents and application and file them with ROC.
- Your work is completed - Once your company is incorporated, we shall send you all the documents and DSCs.