Convert your Proprietorship firm into Private Limited Company
Convert your Proprietorship firm into Private Limited Company Starting at Just ₹ 15,000/- only
Get Started By paying Rs. 15,000
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”.
Sprinthub Solutions has team of experts providing you the best assistance, timely delivery and guaranteeing the highest customer satisfaction with respect to conversion of Proprietorship into Private Limited Company .You may get in touch with our team on 096436-69475 or email info@sprinthub.in for conversion of Proprietorship into Private Limited Company and Compliance services.
Advantages of Conversion of Proprietorship firm into Pvt. Ltd. Company
Separate Legal Existence
Once an entity is registered it is born in the eyes of law which means it is separate from its owners, Directors, Managers, shareholders and employees etc.
Fund Raising
It is the most preferred entity by the investors also as it provides an opportunity to raise money through Banks, Foreign Investors, Venture Capitalist and the Angel Investors etc.
Limited Liability
As the Company is a separate legal entity its Liability is limited to an extent of its Share Capital or the guarantee provided.The Company's obligation does not create any right over the Owner's personal assets.
Perpetual Existence
A Company has a perpetual existence, once it is registered lives forever until and unless it is not winded up by the Promoters or the Government.
Minimum Requirement
Minimum Two Directors and maximum Fifteen
Digital Signatures of Subscriber and Directors
Minimum Two Shareholders
No Minimum Capital requirement
Minimum one Director shall be Indian resident
Director Identification Number if available.
Documents Required for Conversion of Proprietorship firm to Pvt Ltd company
Note:- In case of NRI or Foreign National documents of Directors and Subscribers must be notarized or apostillled.
Process of Conversion of Proprietorship firm to Pvt Ltd company
Complete the Application Form
You are requested to first fill the simple questionnaire provided by our expert team.
Application for DSC
DSC is a Digital Signature Certificate consisting of the E-signatures prepared. It will approximately take 1 day.
E-filing for incorporation of a Company
Once the name is approved, an online application is required to be 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.
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.
Name Availability
The next step is to 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.
Get Certificate of Incorporation
Once the Company gets incorporated we will share all the docs like Incorporation Certificate, MOA , AOA and Digital Signatures.
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 Sprinthub Solutions 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 Sprinthub Solutions.
- 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. Sprinthub Solutions 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.