Switching from Sole Proprietorship to Private Limited Company in India: An Exhaustive Guide

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Procedure for Conversion of Proprietorship to Company

Converting a Sole Proprietorship to Private Limited Company involves several procedural steps to ensure a smooth transition. Below is a general overview of the process:

  1. Board Resolution:

   - Obtain approval for the conversion through a board resolution. It may involve meeting the sole proprietorship's owner or board of directors.

  1. Name Approval:

   - Apply for the availability and approval of a new name for the company. Ensure the proposed name complies with the Registrar of Companies (RoC) guidelines.

  1. Drafting of MOA and AOA:

   Draft the company's Memorandum of Association (MOA) and Articles of Association (AOA).

  1. Application for Conversion:

   - Prepare and file the necessary forms with the RoC for converting the sole proprietorship to a company. Include the prescribed fees and supporting documents.

  1. Share Allotment:

   - Determine the company's share capital structure and allot shares accordingly. It may involve drafting a share allotment agreement.

  1. Obtain Digital Signature Certificates (DSC):

   - Obtain DSC for the proposed directors of the company. All documents filed with the RoC need to be digitally signed.

  1. Filing with RoC:

   - Submit the necessary documents, including the application for conversion, MOA, AOA, and other required forms, to the RoC and pay the requisite fees.

  1. Certificate of Incorporation:

   - Once the RoC is satisfied with the documents, they will issue a Certificate of Incorporation for the company.

  1. Update Statutory Records:

   - Maintain updated statutory records, including the Register of Members, Register of Directors, and other required registers.

  1. Intimate Authorities:

    - Inform various authorities, such as the Income Tax Department, about the conversion. Update necessary registrations and licenses.

  1. Bank Accounts and PAN:

    - Open new bank accounts in the company's name and obtain a new PAN.

Feature List

Feature List
  • Sole Proprietorship to Private Limited Company

Contact Information

Address
West Karikalan Street, CMWSSB Division 161, Ward 161, Zone 12 Alandur, Alandur, Chennai District, Tamil Nadu, 600088, India
Phone
Zip/Post Code
600088

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