Conversion of Proprietorship to Private Limited Company service is offered by the first auditor in Chennai, Tamil Nadu. We are the top advisors in Chennai, Tamil Nadu, for converting proprietorships to private limited companies. In Coimbatore, Madurai, Tirupur, Trichy, Thanjavur, Dindigul, Erode, Salem, Namakkal, Karur, hosur, tuticorin, krishnagiri, Cuddalore, Kanyakumari, Pondicherry, we offer Conversion of Proprietorship to Private Limited Company. We provide Conversion of Proprietorship to Private Limited Company at affordable rates. We provide the service at a lower cost and more efficiently than our rivals.
Overview of the Proprietorship to Pvt Ltd Company
- Due to the low compliance requirements, many business owners in India originally set up as single proprietorships. The company will experience a boom and increase its sales after a specific number of years.
- A sole proprietorship business will now be transformed into a private limited company in order to reduce responsibility, separate the bank accounts and tax filing of an individual, and to restrict their exposure.
- By changing a sole proprietorship business into a private limited company, which is treated as a separate legal entity and reduces liability risk, personal assets are not affected unless fraud is involved.
- The shares of the private limited company are not offered to the public and will be governed under the 2013 Companies Act. In a similar vein, the 1961 Income Tax Act's distinctive tax structure will be distinct from sole proprietorships, which treat their income as individual income.
Having a private corporation registered in India has advantages
There are many advantages to registering a business. The legitimacy of your firm is increased by having a registered company.
- Protects from additional risks and losses and shields from personal liability.
- Brings in additional clients
- Easily obtains bank loans and sound investments from trustworthy investors.
- Provides liability protection to safeguard the resources of your business.
- Improved stability and capital contribution
- Increases the possibility of expanding and growing large.
- You will also receive a DBS Bank-powered Zero Balance Current Account.
- The directors may be chosen by shareholders to operate on their behalf.
- Unlike a sole proprietorship, a business will continue to operate flawlessly even after the death of its directors or owners.
- With the exception of personal matters, the shareholders and directors will enjoy total immunity from third-party lawsuits.
- According to the Income Tax Act of 1961, it is eligible for lower tax rates and subsidies.
- The private limited company's profits are taxed at a rate of 30% plus any applicable surcharges and cesses.
Documents needed for online company registration
In India, registering a private limited corporation is impossible without valid identification and address documents. All of the directors and shareholders of the incorporated firm will need to provide documentation of their identities and addresses. The documents that MCA accepts for the online company registration process are listed below.
Proof of Identity and Address
- A scanned copy of your passport or PAN card (Foreign Nationals & NRIs)
- Voter ID, passport, or driver's licence scan
- A scanned copy of the most recent phone, mobile, electric, or gas bill, bank statement, etc.
- Specimen signature from a scanned passport-sized photo (blank document with signature [directors only])
- An apostilled or notarized copy of the passport must be presented for foreign nationals as a requirement. All supplied documents must be legitimate. The bank statement or the electricity bill, which serve as proof of residence, must be less than two months old.
Proof of Registered Office
The business must have a registered office in India in order to register a company there online. A current copy of the power bill, the property tax receipt, or the water bill must be given as proof of admission to the registered office. A letter from the landlord granting permission to use the space as the registered office of the company should be submitted along with the rental agreement, utility bill, or sale title.
- The most recent bank statement, phone or mobile bill, energy or gas bill, all in scanned form
- English rental agreement scanned and notarized
- Scanned copy of the property owner's certificate of no objection
- English-language scan of a sale or property deed (in case of owned property)
E-Form spice 32
It is a company incorporation e-form that is given at the very end of the process. This form needs to be filled out with all the necessary information before being submitted with the necessary supporting documentation.
FAQ
Is it required for a Private Limited Company to have at least two Directors?
Yes, in order to register a private limited company, you must have at least two directors.
Who is eligible to join an Indian private limited company as a member?
An organisation or person can join a private limited company, including foreigners and NRIs.
What documents are necessary for the conversion process?
PAN Card, ID Proof, Passport-Sized Photograph, Proof of Ownership or Rent Agreement, NOC from Landlord, and Utility Bills are the documents needed for the conversion process.
Do I need to be present in person for the conversion process?
No, the entire process is entirely online, and neither the termination of a sole proprietorship nor the incorporation of a private limited company require your physical presence at our office. A scanned copy of the documents will be mailed to you.
In a sole proprietorship, is foreign ownership permitted?
In a sole proprietorship firm, foreign ownership is not permitted.
In addition to the conversion charge, are there any other payments required to receive the incorporation certificate?
No, there is not a hidden fee or additional charge required. Instead, our staff will mail you the invoice.
What advantages would a Sole Proprietorship have if it became a Private Limited Company?
The advantages of the conversion procedure include Perpetual Existence, Limited Liability, and Ease in Raising Funds.
Are foreign nationals or NRIs allowed to hold director positions in private limited companies?
The answer is that NRIs can join a private limited corporation as a director. However, at least one of the directors must reside in India.
What are the Minimum Requirements for the Process of Conversion?
The Minimum Requirements for the Process of Conversion are DIN for directors, 2 directors, 2 shareholders, and no Minimum Capital required after the Companies (Amendment) Act 2015
How Can a Name Be Reserved for the Company?
By submitting the RUN (Reserve Unique Name) form on the MCA site, the applicant may reserve two names.