Roc Compliance Services

Approx. Rs 24,000 / MonthGet Latest Price

Approx. Rs 35,000 / ProjectGet Latest Price

Before initiating the conversion of a proprietorship into a private limited company, the proprietor must ensure compliance with the following requirements:

• Agreement: An agreement should be entered between the sole proprietor and the private limited company, outlining the terms and conditions of the conversion. This agreement may include details such as the transfer of assets and liabilities, valuation of the business, and other relevant words.
• Memorandum of Association (MOA): The MOA of the Private Limited Company must include an object clause that explicitly states the intention to take over a sole proprietorship concern. This inclusion ensures legal clarity regarding the conversion process.
• Transfer of Assets and Liabilities: All the assets and liabilities of the proprietorship firm must be transferred to the company. This transfer should be appropriately documented and recorded to ensure a smooth transition.
• Directorial Board and Shareholding: The sole proprietor should become a part of the directorial board of the private limited company. They must hold a minimum of 50% of the voting power in the company. It’s important to note that a company must have a minimum of two directors as per the incorporation rules.
• Minimum Share Capital: The incorporation rules of a private limited company mandate a minimum share capital requirement of Rs 1 00,000 (or the applicable currency equivalent). The proprietor must ensure compliance with this minimum capital requirement during the conversion process.

Approx. Rs 35,000 / ProjectGet Latest Price

The benefits of the Conversion of Private Company into Section 8 Company are as follows:

• There is an exemption from Stamp Duty during registration of the Section 8 Company.
• Certain privileges and exemptions under the Companies Act, 2013.
• A firm can also be a member of Section 8 Company.
• The Memorandum of Articles (MoA) and Article of Association (AoA) of Section 8 cannot be altered unless prior approval of the Central Government is taken.

Approx. Rs 25,000 / ProjectGet Latest Price

Additional Information:

Approx. Rs 30,000 / ProjectGet Latest Price

In the starting of their business, people opt for a Sole Proprietorship or Partnership because of its low budget and compliance requirements, with the thought process that the Partnership business will grow, and the revenues involved will become more. Further, to limit the liability and to avail of the benefits of a Private limited company, the Partnership business often gets converted into a Private Limited Company.

Converting a Partnership firm to a private limited company, which becomes a separate legal entity, reduces the risk of liability, and the personal assets will remain untouched except in case of fraud. The incorporation and compliance procedure of a private limited company is as per the Companies act, 2013, and the shares are held privately.

Approx. Rs 30,000 / YearGet Latest Price

Converting a proprietorship into a private limited company offer several benefits that can positively impact the business and its operations. Some of the key advantages include:

• Limited Liability: Shareholders’ assets are safeguarded, and liability is limited to their investment, providing financial security and risk mitigation.
• Separate Legal Entity: A distinct legal entity with perpetual succession ensures stability, credibility, and continuity in ownership or management changes.
• Access to Capital and Funding: Private limited companies have better access to capital through share issuance, attracting investments for expansion and increased financial resources.
• Transferability of Ownership: Ownership is easily transferable through share transfers, facilitating business succession planning and opportunities for selling or exiting the business.
• Tax Benefits and Incentives: Eligibility for tax deductions, exemptions, and reduced rates leads to significant tax savings and improved profitability.
• Enhanced Business Image: Converting enhances stakeholders’ professionalism, credibility, and confidence, fostering better opportunities, collaborations, and partnerships.
• Better Governance and Compliance: Stricter regulations promote good corporate governance, financial transparency, and accountability, reducing legal and compliance risks.

Approx. Rs 24,000 / MonthGet Latest Price

Approx. Rs 24,000 / MonthGet Latest Price

Approx. Rs 18,000 / YearGet Latest Price