Proprietorship to Private Limited

    - Convert sole proprietorship to private limited
    - At just Rs 9,999/-
    - Work handled by professionals
    - Completely online process

Register

refresh
Documents Cost Process FAQs

Proprietorship to Private Limited

It is good practice to start of small in an unincorporated manner, but that does allow the business to scale up and reach maximum growth as the many of the features are missed out in a proprietorship firm. The features such as transfer of shares, limited liability, easy funding process etc are a major things a growing business must consider when they are exploring. Conversion of proprietorship firm to a private limited can be done by executing a proprietorship takeover agreement. A person can convert its sole proprietorship to pvt ltd under companies act, 2013 either forming a new company with takeover objects in its objects, else an existing company can takeover the proprietorship firm. All the assets and liabilities of the sole proprietorship firm gets transferred to the company as on cut off date. There are no tax implications when we convert proprietorship to pvt ltd as the same is exempted under income tax act subject to some conditions. At Unilex Consultants we provide you a hassle free conversion of sole proprietorship to pvt ltd which would be dealt by our professionals within a time frame of 10-15 days, subjective to governmental processing time. Our team takes care of the proprietorship to private limited conversion process and aids in provide you the realistic estimation of cost.

Advantages of Proprietorship to Private Limited

STAMP DUTY FREE

As the assets are already in the part of the company’s name there is no need of paying any exemplary stamp duty for the transfer of assets.

CREDIBILITY

A private limited company will have more credibility and brand value in terms of the general public.

INVESTMENT

A private limited company would attract more investment and angel investors attention as a result the company would have more flow and progress.

TAXATION

The overall process for transferring is taxation free and can be done without any problems provided meeting the requirements.

Documentation for Proprietorship to Private Limited

Passport size photograph of Directors

Copy of Aadhaar Card/ Voter identity card

Copy of PAN Card of the Directors

Electricity/ Water bill (Business Place)

Landlord NOC (Format will be provided)

Service tax or sales tax number if any

Proprietorship registration certificate

Latest ITR acknowledgements

Packages



Note:


Process involved in registering a Proprietorship to Private Limited

1

Obtaining DSC and name approval

1-3 Working Day

2

Document Review & Completion

3-4 Working Day

3

Document Submission

1-2 Working Day

Requirements for Proprietorship to Private Limited

    - Kickstart your firm with just Rs 1,999/-
    - all the assets and liabilities of the sole proprietary concern relating to the business immediately before the succession become the assets and liabilities of the company.
    - the shareholding of the sole proprietor in the company is not less than fifty per cent of the total voting power in the company and his shareholding continues to remain as such for a period of five years from the date of the succession; and
    - the sole proprietor does not receive any consideration or benefit, directly or indirectly, in any form or manner, other than by way of allotment of shares in the company;

FAQs About Proprietorship to Private Limited

Can a Sole Proprietorship be converted into a Private Limited Company?
Yes, a sole proprietorship can be converted into a Private Limited Company by executing an agreement.
What is the minimum paid-up capital of a Private Limited Company?
As per the amendment in the Companies Act, 2013 there is no minimum amount of paid up share capital required for the Incorporation. There is no upper limit on having the authorized capital and the paid up capital. It can be increased any time, by payment of additional stamp duty and registration fee.
What are the benefits of converting a sole proprietorship into a Private Limited Company?
The liability of the members is limited to their shares. Death or insolvency of the member does not affect the existence of the company. A Private Company has more creditworthiness due to its stringent compliance and disclosure
What is the Memorandum of Association(MOA) and the Articles of Association(AOA) of a company and what is the procedure in their regard?
On receipt of the name approval letter from the ROC the MOA and the AOA are required to be drafted. The MOA states the main, ancillary / subsidiary and other objects of the proposed company. The AOA contains the rules and procedures for the routine conduct of the proposed company. It also states the authorized share capital of the proposed company and the names of its first / permanent directors. After the MOA and AOA are required to be stamped. A stamp duty is required to be paid on the MOA and on the AOA. The stamp duty depends on the authorized share capital.
Can NRI’s/Foreign national become a director in Private Ltd Company?
Yes, a NRI or a foreign national can become the director in the private limited company, subject to the condition that out of all the directors’ atleast one director should be resident in India for more than 182 days. Apart from one condition above, there is no other condition attached to it.
How is the certificate of incorporation issued?
After all the documents are filed, the ROC calls the attorney on a specific date for scrutiny and making the corrections in the MOA and AOA filed. On complying with the same, the certificate of incorporation is granted to the attorney.
What are the documents required for bank account opening of Private Ltd Company?
Certificate of Incorporation PAN Card Acknowledgement Memorandum of Association (MOA) Articles of Association (AOA) Board Resolution as per the format is given by Bank Bank Account opening form as per respective bank.

Why choose Unilex?

Well with highly qualified professionals in our team along with the technology gives edge over others, as a result highly rated professional services with full customer satisfaction is assured. We help to grow and manage your business letting you to concentrate on your business.

MSME Registered

Unilex is registered with the Ministry of Micro, Small & Medium Enterprises (MSME), a part of Government of India.

ISO 9001:2015 Certified

Unilex is a ISO certified body, assuring the quality professional services to aspiring startups

Money Back Guarantee

Subject to our terms and conditions, money back is guaranteed if we failed to give 100% customer satisfaction

Google Partner

Unilex is a Google Partner. Google Partners are tasked with helping businesses market their service or products online.

900+

Satisfied Enterprenuers

500+

Team Strength

10 years+

Professional experience

2000+

Services delivered

Learning center

Learning never stops

Get yourself updated with various start-up/Entrepreneurship laws applicable in India. Dive into our well written articles/blogs by our experts and get more information on government regulations and company rules and regulations.

Start Learning