Proprietorship to Pvt Ltd Company

Converting a proprietorship to a private limited company involves a legal process that transforms the structure and status of the business. Here's a general guide on how to convert a proprietorship into a private limited company in India:

Understanding the Process: Recognize that the conversion involves legal and procedural steps, and it's advisable to seek professional advice.

Name Reservation: Choose a unique name for the private limited company and check its availability on the Ministry of Corporate Affairs (MCA) portal. Reserve the name if available.

Board Meeting and Resolution: Convene a board meeting of the proprietorship to pass a resolution approving the conversion to a private limited company. The resolution should cover key aspects such as the conversion, the adoption of new articles of association, and the appointment of directors.

Appoint Directors: Appoint directors for the private limited company. The proprietor may become a director and shareholder in the new company.

Drafting Articles of Association (AoA) and Memorandum of Association (MoA): Draft new Articles of Association (AoA) and Memorandum of Association (MoA) in compliance with the Companies Act, 2013. These documents define the rules, regulations, and objectives of the company.

Filing Incorporation Documents: Prepare the necessary incorporation documents, including the AoA, MoA, and other required forms.

File the incorporation documents with the Registrar of Companies (RoC) through the MCA portal.

Payment of Stamp Duty: Pay the applicable stamp duty for the incorporation documents.

Certificate of Incorporation (CoI): Upon successful verification of documents, the RoC will issue a Certificate of Incorporation. The business is now officially a private limited company.

PAN and TAN Application: Apply for a new PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) for the private limited company.