B-300 Saraswati Vihar,Pitampura, New Delhi-110034 +918750008585 contact@legalraasta.com

Conversion of Proprietorship to Private Limited Company

  • Affordable Price
  • Digital Signature & DIN for Directors
  • Name Search Approval
  • Company PAN Card
  • MOA/AOA
  • Fast & Online Process
  • 100% Customer Satisfaction
  • Ideal for Growing Businesses

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Procedure
Definition
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FAQ

Proprietor to Private Company Conversion Procedure


Complete the Conversion of Sole Proprietor Application Form

Provide us Pertinent Documents

Make an Online Payment

Our executive will manage the Application process for Conversion of Sole Proprietor

We will mail you a Certificate of Incorporation

Call Us For Quote

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+918750008585

Conversion of Sole Proprietor to Private Limited Company


A proprietorship, also referred to as a sole proprietorship, is a business that is run by only one person. As a single proprietorship is run by one person, there are no issues with management of such a business.

You can convert your proprietorship to a private limited company if your firm grows and your liabilities do as well. An individual must have or engage into a formal agreement for the conversion process in order to proceed, which is a difficult and drawn-out process, so you can seek the assistance of a legal advisor from LegalRaasta.

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Minimum Requirements for Conversion


Documents Required for Conversion of Proprietor to Private Company


A copy of each proposed partner's PAN card.
Passports, election cards or voter identity cards, ration cards, driving licenses, and Aadhaar cards are all acceptable forms of address or identity proof for Indian citizens not more than 2 months old.
The Partner's Ownership Proof must include no more than 2 months old Electricity Bills, Telephone Bills, Gas Bills, Mobile Bills, or any other utility bills from the company location.
For Digital Signature Certificate we required two most recent passport photos.
All directors and members must provide the most recent bank statements no older than two months.
If a rented premises agreement or property papers are required, a copy of address proof is required.
The landlord NOC should be in given downloaded PDF format.

Conditions for Conversion of Proprietor to Private Limited Company


Procedure for Conversion of Proprietor to Private Limited Company


1. Formalities for a Slump Sale

The owner must follow all slump selling requirements.


2. Apply for DIN and DSC

The applicant must then apply for a Director Identification Number (DIN) and a Digital Signature Certificate (DSC).


3. Verification of company name

The company name is checked and verified in this step to ensure that it complies with the Ministry of Corporate Affairs' (MCA) requirement.


4. Draft the MOA and AOA

Next, the proprietor must draft the Memorandum of Association and the Articles of Association.


5. Filling out the Form

The applicant would file the application form to obtain the certificate of incorporation once the name of the company had been approved by the appropriate authorities.


6. Document Submission

After completing the aforementioned steps, the applicant must submit all necessary paperwork to the MCA.


7. Company Incorporation

The MCA and Registrar of Companies will issue the company's certificate of incorporation after confirming the procedure.


8. Update a bank account

The next step is to update a bank account in the company's name to manage day-to-day operations on the organization's behalf.


9. Apply for a PAN and TAN Number

The applicant must now apply with the necessary authority for a PAN and TAN number.


Benefits of Conversion of Proprietorship into Company


Limited Liability

The status of being legally responsible only for a limited amount of a company's debts. As a result, where a company is limited by shares, the members' liability on a winding-up is limited to the amount unpaid on their shares. This means that if you have no balance payable on the number of shares you own, you are not liable to the company for any debt or credit amount that remains unpaid.


Fund Raising

In India, the only type of business that can raise funds from Venture Capitalists or Angel Investors is a Private Limited Company.


Perpetual Succession

This refers to the idea that even after a proprietorship business dies, the entity will continue to exist; however, it is not applicable to private limited companies. Even if a particular employee left, the business would continue to run.


Better Reputation

Compared to a sole proprietorship business, a private limited company would unquestionably have a better reputation. Due to its registration with the MCA, this registration will increase the company's reputation in the public's eyes.


What Is Included In Our Package?


DIN for 2 Directors
Digital Signature for 2 Directors
Name Search & Approval
MOA/AOA
Company Pan Card

Why Choose Legal Raasta


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Frequently Asked Questions


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

Any individual/organization can become a member of the private limited company including foreigners/NRI.

The entire procedure is 100% online and you don’t have to be present at our office or any other office for the closure of proprietorship & incorporation of private limited. A scanned copy of documents has to be sent via mail.

There is absolutely no other payment. We will send you an all-inclusive invoice, with no hidden charges.

LegalRaasta.com can convert proprietorship into a private limited company typically in 14-20 days. The time took also depends on relevant documents provided by the applicant and the speed of approvals from the government. To ensure speedy registration, please pick a unique name for the proposed Company and make sure you have all the required documents ready, before 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 a Resident of India.

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