Convert your Proprietorship firm into Private Limited Company
Convert your Proprietorship firm into Private Limited Company
Starting at Just ₹ 15,000/- only
- Ideal for startups
- For medium and large sized business
- Simple & Secure Online Process
- Dedicated Professional
- Get Conversion in 25-35 Days
- Get Post Incorporation Assistance
Get Quote Instantly in a Minute
Introduction
A business man who works at small scale prefers to continue its business as Sole Proprietorship due to less compliance requirements As soon as business grows and spreads there is urge to separate the bank accounts & the tax filings of the Sole Proprietor and that of the business. Therefore, it is the right time to get it converted into a Private Limited Company.
Conversion of a Sole Proprietorship into a Private Limited Company can only be done post execution of an agreement between the Proprietorship and the Private Limited Company (once it is incorporated) with respect to sale of the business. Further the Memorandum of Association of such Private Limited Company shall have the following line as one of the objectives “the takeover of a Sole Proprietorship Concern”.
Advantages
Firm Registration
Advantages of Conversion of Proprietorship firm
Requirements
Firm Registration
Minimum Requirements
- Minimum Two Directors and maximum Fifteen
- Minimum Two Shareholders
- Minimum one Director shall be Indian resident
- Digital Signatures of Subscriber and Directors
- No Minimum Capital requirement.
- Director Identification Number if available.
Requirements
Firm Registration
Documents Required for Conversion of Proprietorship firm
- PAN Card of the Member and Directors of the proposed Company
- Latest passport size photograph of Member and Directors;
- Passport in case of Foreign Nationals Identity Proof of the Member and Directors of the proposed Company; (Aadhar / Voter ID / Driving License / Passport)
- Business Address Proof Owned Property : (Copy of Registry and Latest Govt. Electricity Bill or Water Bill)
- Address Proof the Member and Directors (Utility Bill / Telephone Bill / Mobile Bill / Bank Statement not older than two months)
- Business Address Proof Rented/leased : (Rent Agreement, NOC from the Owner, Latest Govt. Electricity Bill or Water Bill)
Process
Firm Registration
Process of Conversion of Proprietorship firm to Pvt Ltd company
1. Complete the Application Form
You are requested to first fill the simple questionnaire provided by our expert team.
Step 01
2. Document Processing
At the second step we will be requiring the documents in accordance with the questionnaire filled by you so that we can arrange them as per the requirement and for processing.
Step 02
3. Application for DSC
DSC is a Digital Signature Certificate consisting of the E-signatures prepared. It will approximately take 1 day.
Step 03
4. Name Availability
The next step is check the name availability. The name should be unique in nature and should not be similar to name of any other entity registered. It may take at least 1-2 days.
Step 04
5. E-filing for incorporation of a Company
Once the name is approved, an online application is required to filed through SPICE+ along with the requisite documents as obtained from the client with ROC. The MOA as well as AOA shall be filed online. This process again takes approximately 2-3 days.
Step 05
6. Get Certificate of Incorporation
Once the Company gets incorporated we will share all the docs like Incorporation Certificate, MOA , AOA and Digital Signatures.
Step 06
Types
Firm Registration
Convert your Proprietorship to Pvt. Ltd. Company ₹15,000/-
- 2 Digital Signature Certificates
- INC 20A Commencement of Business Certificate (form-20a)
- Company Incorporation using SPICe
- MOA & AOA
- GST Registration
- 2 Digital Signature Certificates
- Stamp duty on INR 1 Lakh Authorized Capital (Rajasthan)
- Bank Account Open
- PAN/TAN
- ESI and PF Registration
Additional
Firm Registration
Additional Information
How to Select the Name of Company
- You can check Company name availability thereby logging into MCA where you need to keep in mind two or three available options along with the activity type. Our team will assist you in the selection of name of company.
- Also, along with checking the name availability we also need to check the trademark if already registered under the proposed name which makes the online application for registration more powerful. If you want to have a trademark of your word or logo you can get the same through Firm Registration by clicking on the below mentioned link Trademark Registration
Other Key Points
- If the proposed Director is already having the DIN then you can also check whether DIR-3 KYC is completed. You can verify the same with the help of our experts. If the same is not done yet, it can be done with help of Firm Registration.
- The private limited company is required to manage all the compliances after incorporation of the company like appointment of statutory auditor, filing commencement of business, Income Tax Filing, Annual Returns with ROC and other compliances as required by the law. Firm Registration has a team of experts who keeps an eye on the due dates of your compliances and reminds you through mails.
- The Assets & Liability of the Sole Proprietorship relating to the business shall be immediately before the succession should become the Assets & Liability of the company.
- In case 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, it will not attract capital gain.
- Sole Proprietor cannot receive any other benefit or consideration except by way of allotment of shares.
Faq's
Firm Registration
FAQs on Conversion of Proprietorship firm to Pvt. Ltd. Company
How many people are required to form Private Limited Company?
Minimum two Directors and two Members agreeing to subscribe the shares of the Company.
Can a Foreign National or NRI be a Director of a Company?
Yes, the above person can become a Director post obtaining Director Identification Number. However one Director should be Indian Resident.
A Member is required to deposit the money in the bank account at the earliest and file the form for commencement within 180 days from the date of incorporation of the Company.
Whether it is necessary to have a PAN Card?
Yes, for Indian nationals becoming a Director in a Company it is mandatory to have a PAN Card and Passport in case of Foreign Nationals.
Yes, a Director can also become a shareholder and vice versa as a Company is a Separate Legal Entity.
What is the minimum capital requirement to form a Private Limited Company?
There is absolutely no minimum capital required but generally people prefer and are advised to incorporate the same with a minimum capital of Rs. 1 Lacs.
Can the money deposited as subscription money be withdrawn?
No, the money cannot be withdrawn but can be used by the Company for official purpose like for paying salary to staff and employees, other administrative expenses etc.
Is it mandatory to have an Auditor and if yes in what time period it is required to be appointed?
As per Companies Act, 2013 it is compulsory to have an individual or firm as an Auditor of a Company. The first Auditor shall be appointed within 30 days from the date of Incorporation by the Board of Directors .