We will help you to convert Sole Proprietorship into Private Limited Company!

A person carrying on a business as a Sole Proprietorship and after there is a growth in business i.e. income growth one can convert it to a Private Limited Company.   For this conversion there has to be an agreement between Sole Proprietorship and Private Limited Company. Such conversion can help you to expand business.

Requisites:

  • Minimum 2 Directors
  • Minimum Rs. 1 lakh Share Capital
  • Minimum 2 shareholders

Procedure for conversion:

Procedure for converting Sole Proprietorship into Private limited company basically would be same as that of forming a new company.

  • To incorporate new Private Limited Company
  • All business assets of sole proprietorship have to transferred to newly formed Private Limited Company
  • After conversion the sole proprietorship should be terminated

Advantages of conversion:

  • Limited Liability
  • Tax benefits
  • Separate legal entity
  • Perpetual Succession

Frequently Asked Questions:

Who can form a Private limited company?

Any individual of Indian origin or Non- resident Indian is eligible to form a company.

What is the number of people required to incorporate a Private limited company?

Minimum 2 Directors and maximum 15 Directors must have to form a private limited company and also minimum 2 shareholders and maximum 200 shareholders are allowed.

Can a Foreign National be a Director in a Private limited company?

Yes, a Foreign National or NRI can become a Director by obtaining Director Identification Number.

Is there any minimum paid up capital required to incorporate a private limited company?

Yes, minimum paid up capital required is Rs. 1 lakh.

(All Inclusive)