Being the Sole Proprietor enjoys the benefit of the most convenient business structure. Although, it has its own limitations. To overcome the limitations and to explore the full potential, the Sole Proprietorship is to be converted to the Private Limited Company. Private Limited Company is incorporated under the Companies Act 2013 and governed by the Ministry of Corporate Affairs (MCA). It is the popular option for the start-ups and new businesses which are having high growth potential as well as looking for the funding in their business. Starting with the Private Limited Company, it can have members ranging from 2-200 members and separate legal existence apart from their promoters as well as Directors.
Benefits of conversion from Proprietorship to Private Limited Company
Documents required for Conversion
Self-attested copy of PAN Card of the Shareholders and Directors. In case of Foreign nationals, a valid passport is required.
Self-attested copy of Identity proof of the Shareholders and Directors (Aadhar card, Driving Licence, Voter ID, Passport)
Self-attested copy of Address proof of the Shareholders and Directors (Latest electricity bill / telephone bill / bank statements)
Latest photographs of Shareholders and Directors.
Address proof of Registered business premises (Latest electricity bill / telephone bill)
Rent agreement in case the premises is leased or rented.
NOC from the owner of the property.
Steps to Convert Proprietorship To Private Limited Company
Step 1 – Search for the Name availability
Step 2 – Filing of the SPIC+ form
Step 3 – Apply for the PAN and TAN of the Company
Step 4 – Filing the AGILE PRO form
Step 5 – Issued Certificate of Incorporation by ROC with PAN, TAN along with GST and Bank account.