Proprietorship To pvt.

Conversion of Company from Proprietorship to Private Limited: Overview

The conversion of a Sole Proprietorship into a Private Limited Company involves transforming the business structure for enhanced benefits such as limited liability, separate legal entity, and improved access to funding. This conversion is governed by the Companies Act, 2013.

Process:

• Decision to Convert: The proprietor must decide to convert the sole proprietorship into a private limited company and obtain approval from all stakeholders.
• Name Approval: Reserve a new name for the Private Limited Company with the Registrar of Companies (ROC) and ensure it complies with naming guidelines.
• Application for Conversion: File an application for the conversion with the ROC, along with the required documents, including Form URC-1 (Application for Registration as a Company) and Form INC-32 (Integrated Incorporation Form).
• Drafting of Memorandum and Articles of Association: Draft the Memorandum of Association and Articles of Association for the new Private Limited Company.
• Issuance of Certificate of Incorporation: Upon approval from the ROC, a Certificate of Incorporation is issued for the Private Limited Company.
• Allotment of Shares: Allot shares to the proprietor of the former sole proprietorship in accordance with the agreed terms.
• Transition of Assets and Liabilities: Transfer assets and liabilities from the sole proprietorship to the newly formed Private Limited Company.

Documents Required:

• Proprietorship Registration Certificate
• Form URC-1 (Application for Registration as a Company)
• Form INC-32 (Integrated Incorporation Form)
• Memorandum of Association and Articles of Association
• Consent of Proprietor
• No Objection Certificate (NOC)
• Address proof, identity proof, and photographs of directors

Why Hire Lawtech for This Service:

• Legal Expertise: Lawtech provides legal expertise to guide you through the regulatory requirements and legal aspects of the conversion process.
• Documentation Support: Assisting in the preparation and submission of all required documents, ensuring compliance with the Companies Act, 2013.
• Customized Solutions: Tailoring the Memorandum and Articles of Association to meet the specific needs and preferences of the proprietor.
• Compliance Assurance: Ensuring that the conversion process complies with all statutory and regulatory requirements.
• Timely Execution: Efficiently managing the conversion process to meet all deadlines and avoid delays.
• Transition Planning: Providing assistance in the smooth transition of assets and liabilities from the sole proprietorship to the Private Limited Company.
• Post-conversion Compliance: Guiding through post-conversion compliance requirements applicable to Private Limited Companies.
• Conflict Resolution: Addressing any legal issues or conflicts that may arise during the conversion process.

By engaging The Lawtech for the conversion of your company from a proprietorship to a Private Limited Company, you benefit from professional legal support, ensuring a seamless and legally compliant transition.