You can easily Convert Sole Proprietorship to Private Limited Company through a transfer of assets.

Introduction

A proprietorship company is a type of business organization where there is no legal distinction between the owner of the business and the business. The owner is in direct control of all aspects related to the business, is accountable for its functioning and completely owns its profits or losses. Sign up for our Conversion from Proprietorship to a Private Limited Company Service today, so that you can shed the liabilities & compliances of a Proprietorship and emerge as a Private Company. With our team working for you, you can focus on the impending transition, and acquiring funding for the same. Sign up today!

Advantages of a Private Company

• Allows for easy cooperation between a team: Through the formal transfer of shares, no problems can creep in later.

• Fund-raising: If your ventures require you to raise money for your business, particularly private equity funding, then you will have to register as a company and issue shares in return for funding.
• Limiting Your Liability: By creating a company, you can limit your liabilities, i.e. you will not be liable for the debts and obligations of the company. As a proprietor, you have unlimited liability for all debts and obligations of the company. This means that your personal assets can be attached to recover dues owed by your business.

Required Documents

The documents required in order to effect a change from a Proprietorship to a Private Company are –

• Digital Signature Certificate (DSC) of all directors.
• Director Identification Number (DIN) of all directors.
• Name approval from ROC.
• Altered Memorandum and Articles of Association (MOA/AOA).
• SPICE i.e  E form INC 32.