Sole Proprietorship To PVT. LTD. Company

Enable Your Business. As A Private Entity.

     

    Transfer of a Sole Proprietorship into a Private Limited Company is a great way for lone traders to expand their enterprise by bringing in more members minus the personal liability. Since a sole proprietorship has only one person, it can’t be converted into a Private Limited Company directly. It can be done by either shutting the proprietorship and registering a Private Limited Company with new directors and shareholders or by adding another person while converting it into a Private Limited Company. A sole proprietor can then enjoy business expansion and going concern for the Private Limited Company rather than letting the business die off with the sole owner.

    Requirements

    To register your business as a Private Limited Company, you require the following:

    •  2 Directors with all KYC Documents. One Director should be an Indian resident.
    • Minimum 2 shareholders, either individuals or entities.
    • Digital signatures of all parties involved since the procedure is online.
    • Address of the registered office

    Procedure

    01
    Apply for a Company Name:

    File an application for your business’ Name as an (OPC) Private Limited Company. You can get approval from the company SPICE + PART A Application procedure and then proceed with registration. Alternatively, you can reserve your company’s name through the SPICe incorporation. If the first name is rejected due to noncompliance or an already existing name, one of the two alternative suggestions given will be chosen.

    02
    Prepare the forms and file the company incorporation documents with the MCA:

    These essential documents consist of a Simplified Proforma for Incorporating a Company (SPICE+), the Memorandum of Association, Articles of Association labeled as INC e-form 32, eMOA and eAOA,AGILE PRO & INC 9 respectively. All the aforementioned need to be attested or executed along with the digital signatures of the directors and shareholders.

    03
    Processing of the Documents:

    The Company Registration Centre or CRC will process these documents and duly approve of the registration, upon which the following will be issued:

    • Certificate of Incorporation
    • (DIN allotment
    • Mandatory issue of PAN
    • Mandatory issue of TAN
    • Mandatory issue of EPFO registration
    • Mandatory issue of ESIC registration
    • Mandatory issue of Profession Tax registration (Maharashtra & Karnataka)
    • Mandatory Opening of Bank Account for the Company and
    • Allotment of GSTIN (if so applied for)

    Documentation

    To have your sole proprietorship registered as a private limited company, the following documents are to be furnished with digital signatures of the concerned parties.
    Documents Signed By Shareholders:

    • Application for Digital Signature Certificate (DSC)
    • INC-9 Declaration by the Director and Shareholders
    Documents Signed by all directors:

    • Consent to Act as Director: Form DIR-2
    • Details of DIN
    • Declaration of DIN (If DIN is allotted previously)
    Address of the Registered Office:

    • Address Proof: Electricity bill / Tax Paid receipt
    • No objection letter from the owner of the company property if leased
    ID & Address from Directors and Shareholders:
    Shareholders and Directors have to submit their identity proof and latest address proof

    • Acceptable Documents:
    • Primary ID: Permanent Account Number (PAN)
    • Additional ID: Aadhaar Card or Driving License
    • Latest Address Proof: Telephone Bill, voters ID, passport, electricity bill, bank statement or bank passbook with the latest entry.
    Additional Documents:
    The following documents may be required for registration on a case to case circumstance:

    • NOC for the usage of a brand name from its trademark owner
    • Resolution and NOC from an existing Company / LLP for the use of a name similar to their company.
    • Declaration for complying with sectoral regulatory compliance

    Requirements

    To register your business as a Private Limited Company, you require the following:
    01
    The membership can be extended beyond a sole proprietor to 2-200 members.
    02
    Separate legal identity of business with going concern.
    03
    Limited liability to the extent of shares invested.
    04
    Capacity to expand business by raising private share capital.
    05
    Collective decision making of all directors and shareholders.
    06
    Taxes are chargeable at 30% plus surcharges as well as cess.

    Proprietorship To Pvt. Ltd. – Let’s Craft The Journey

    Be eformed!