Bizivalue

Follow us on :

Proprietorship to pvt ltd in bangalore

From Any where in India. In just 3 Simple Steps

Fill the form!

Simply fill the given form to get started.

Call to discuss

Our expert will connect with you & prepare documents.

Get certificate

Get your Company Incorporation Certificate

Quick Enquiry

Register your company today

Complete Process

Overview

A sole proprietorship cannot get all benefits of operation as it grows. So, there will be a need to convert the proprietorship into a private limited company. The conversion can bring in its wake all the benefits of a company like higher capital, limited liability, and so on. Conversion of a proprietorship into a private limited company provides many benefits, but it also brings along the diffusion of power and loss of independence. Therefore the decision must be taken after careful consideration of all the factors involved and see if it genuinely brings about privileges intended.

Process

The following are the steps involved in the conversion of aproprietorship to acompany when the above mentioned requirements are met:

  • The proprietor must complete the slump sale formalities.
  • The Director Identification Number (DIN) and the Digital signature certificate (DSC) must be obtained for all the directors.
  • The proprietor must apply for the availability of name in Form – 1.
    Prepare the MOA and Articles of Association (AOA) of the company specifying the objects and the rules of the company.
  • Apply for the incorporation of the company to the Ministry of Corporate Affairs (MCA).
  • Submit all the relevant documents.
  • Receive the Certificate of Incorporation.
  • Apply for a new PAN and TAN.
  • Modify the bank details as per the conversion.

Documents Required

The following documents are required for conversion:

  • PAN Card copy of all directors (Identity Proof).
  • Copy of Aadhar card/ Voters ID (Address Proof).
  • Passport size photographs of Directors.
  • Proof of ownership of business place (if owned).
  • Rental agreement if rented.
  • No Objection Certificate (NOC) of Landlord.
    Electricity or water bill.

The forms to be submitted to the MCA are:

  • Form 1 must be filed with the MOA, AOA and other documents.
  • Form 18 specifies the details of the registered office.
  • Form 32 contains particulars of the information of the directors.

Compliances

  • A takeover agreement or sale agreement needs to be entered into between the sole proprietor and company.
  • The Memorandum of Association (MOA) needs to carry the object “The take over of a sole proprietorship”.
  • All the assets and liabilities of the sole proprietorship must be transferred to the company.
  • The shareholding of the proprietor should not be less than 50% of the voting power, and the same must continue to be held for a period of 5 years.
  • The proprietor does not receive any additional benefits either directly or indirectly, except to the extent of shares held.

Faqs

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Complete Process