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What is Proprietorship firm converted into a Private Company

A Sole Proprietorship may be easy to start, but it can hamper your growth. After all, it’s difficult to build a big business as a single person. If you’re looking to add partners to the business, but don’t want too much hassle, in the way of compliance work or cost, it is best to switch to a partnership.

Procedure for Conversion of Sole Proprietorship to Partnership

Drafting of Partnership Deed:
The conversion of a sole proprietorship into a partnership begins with the drafting of the partnership deed of your firm.

Declaration of Transfer:
The deed, in this case, would be different from a regular partnership deed, as it would also make several references to the proprietorship business and declare that it has been transferred to the partnership firm.

Main Features of a Partnership:
A partnership firm can have a maximum of 20 partners (unless you’re running a banking firm, in which case you have a maximum of 10 partners). Each partner has effective and equal control over the activities of the business and shares profits equally, unless there is any agreement contrary to this in the partnership agreement. No partners can, without the consensus of other partners transfer his interest to any other person (except an existing partner) without unanimous consent of all other partners. A partnership firm has a limited life span. Legally, the firm must be dissolved on retirement, lunacy, bankruptcy or death of any partner.

Advantages of the conversion from proprietorship to private company


STAMP DUTY FREE

As the assets are already in the part of the company’s name there is no need of paying any exemplary stamp duty for the transfer of assets.

CREDIBILITY

A private limited company will have more credibility and brand value in terms of the general public.

INVESTMENT

A private limited company would attract more investment and angel investors attention as a result the company would have more flow and progress.

TAXATION

The overall process for transferring is taxation free and can be done without any problems provided meeting the requirements.

Documents required for proprietorship firm to private Company


Passport size photograph of Directors

Copy of Aadhaar Card/ Voter identity card

Copy of PAN Card of the Directors

Electricity/ Water bill (Business Place)

Landlord NOC (Format will be provided)

Service tax or sales tax number if any

Proprietorship registration certificate

Latest ITR acknowledgements

Call Us at : 8422985681 / 9833628008


PACKAGES


Basic

13999/-
Inclusive all taxes

Name Approval
MOA/AOA
2 DIN
2 DSC
PAN & TAN
Certificate of Incorporation
Share Certificate

Premium

16999/-
Inclusive all taxes

Name Approval
MOA/AOA
2 DIN
2 DSC
PAN & TAN
Certificate of Incorporation
PAN surrender
Department follow up
Trademark filing
GST registration

Standard

15999/-
Inclusive all taxes

Name Approval
MOA/AOA
2 DIN
2 DSC
PAN & TAN
Certificate of Incorporation
PAN surrender
Department follow up

Note:

  • The above price may vary due to stamp duty in various states
  • Trademark filing excludes government fees

Procedure of Proprietorship to Private Limited Company Conversion

1

Obtaining DSC and name approval

1-3 Working Day

Digital Signature Certificate (DSC) is required for the proposed Directors of the Private Limited Company. After getting DSC we will apply for name approval.
2

Document Review & Completion

3-4 Working Day

Once the name gets approved, our team will get in touch and collect all the requisite documents in scan for the incorporation of the company through the SPICE i.e INC 32.
3

Document Submission

1-2 Working Day

After the review of all the documents required, we will submit them to the MCA and once it gets approved by the ministry we will send the MOA & AOA via mail and DSC through courier and go for the preparation of takeover of business agreement

Mandatory requirements for conversion of proprietorship to private company

  • all the assets and liabilities of the sole proprietary concern relating to the business immediately before the succession become the assets and liabilities of the company.
  • the shareholding of the sole proprietor in the company is not less than fifty per cent of the total voting power in the company and his shareholding continues to remain as such for a period of five years from the date of the succession; and
  • the sole proprietor does not receive any consideration or benefit, directly or indirectly, in any form or manner, other than by way of allotment of shares in the company;

FAQ’s About Proprietorship firm converted into a Private Company

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WHY CHOOSE KSHITIJ CONSULTANCY ?

Well with highly qualified professionals in our team along with the technology gives edge over others, as a result highly rated professional services with full customer satisfaction is assured. We help to grow and manage your business letting you to concentrate on your business.

Testimonial's

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    Company Secretary
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