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There are many people who jump into the field of business as a proprietorship as it requires low compliances but if the business starts to grow the bank accounts are separated as well as the tax filing of the proprietorship.


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Proprietorship into a Private Company

It is very important to have an agreement between the sole proprietorship and a private limited company. The memorandum of Association of such companies should have the “takeover of a sole proprietorship concern” as an objective.

Process of Conversion

  • 1

    Step 1

    The DSC of the new director and the old proprietor is required and applied if not already

  • 2

    Step 2

    The DIN of the same two people is required and applied for if not yet

  • 3

    Step 3

    The name of the company is approved

  • 4

    Step 4

    The MOA and AOA is drafted where the objective if the firm is also mentioned

  • 5

    Step 5

    The certificate of incorporation is issued by the ministry of corporate affairs

  • 6

    Step 6

    The company needs to have a renewed TAN and PAN number

  • 7

    Step 7

    The account number is changed under the name of the private limited company

Documents Required for the Conversion

  • There has be a passport size photo of the directors
  • PAN card of the directors of the company
  • The rent agreement if the place is on rent
  • Identity card of the directors as well as the members of the company
  • Water bill of the Place
  • Copy of the property place if owned
  • NOC from the landlord if the place is rented
  • Frequently asked Questions

    What is the minimum number of directors in a Private Limited company?+
    What comprises the private limited company?+

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