Convert Proprietorship into Private Limited Company

Rs.12,999/-* Onwards


In India most of the businesses are registered only as sole proprietorship firm but today they are growing business & need proper private limited company for the expansion. First of all you have to understand about the conversion of the proprietorship firm to private limited company is likely to incorporate a new fresh private limited company registration then take over the old proprietorship firm by the company.

So first objective in this task is to create a private limited company with the fresh new director along with old proprietor. In the private limited company there must be always minimum 2 directors, so even if you are single founder you can include your family member on the paper for the compliance purpose.

Documents Required For Conversion To Public Company

Rent agreement(If rented property)

Electricity/ Water bill (Business Place)

Copy of Property papers (If owned property)

Landlord NOC (Format will be provided)

PAN Card of Directors

Passport size photograph of Directors

Aadhaar Card/ Voter identity card

Documents Required For Conversion To Public Company

All the assets or liabilities of the old sole proprietorship firm will become the assets of the new private limited company on immediately basis.

The shareholding of the old proprietor must be at least 50% in the new private limited company or you can say minimum 50% voting rights power. Even after the incorporation of new company old proprietor has to hold the shareholding at least for the 5 years.

The old sole proprietor will not receive any benefits or consideration from the new company directly or indirectly other than share allotment because it’s not treated as sale of the old proprietorship firm.

FAQs

To convert proprietorship into private limited company typically it takes 14-20 days. The time taken also depends on relevant documents provided by the applicant and speed of approvals from government department. To ensure fast registration, please pick a unique name for the proposed Company and make sure you have all the required documents ready, prior to starting the registration process.

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 an Indian Resident.

Yes, you need a minimum of two Directors for a private limited company. If there is the sole owner, you can register as a One Person Company.

Any individual/organization is capable to become the member of the private limited company including foreigners/NRI