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.
- 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.