Converting the Proprietorship to A Private Limited Company

Convert Proprietorship to Private Limited Company in India

Step Up Your Business with Pvt Ltd Conversion

From Sole Proprietor to a Scalable, Credible & Legally Recognized Entity

What is Proprietorship to Private Limited Conversion?

Converting a Proprietorship into a Private Limited Company is a smart move for entrepreneurs looking to scale operations, access funding, and build a structured business identity. This transformation gives your business a separate legal identity, limited liability protection, and opens doors to investment.

Why Convert to a Private Limited Company?

• Limited Liability Protection for promoters

• Separate Legal Entity status

• Eligible for VC/Angel Investment

• Easier Access to Bank Loans & Credits

• Better Brand Value & Credibility

• Perpetual Succession

• Transferability of Shares

Conditions & Eligibility

Proprietor must be an Indian resident
Business must have valid PAN, GST, or licenses
Assets & liabilities to be transferred to the new company
No objection from creditors or third parties
At least two directors and two shareholders required

Documents Required

• PAN, Aadhaar of Proprietor

• Address & ID Proof of all Directors

• Utility Bill & Rent Agreement of Registered Office

• NOC from Property Owner

• Digital Signature Certificate (DSC)

• Director Identification Number (DIN)

• MOA & AOA

• Sale Agreement / Transfer Agreement of assets

Step-by-Step Conversion Process

Duration: 10–15 working days

Legal Framework

• Governed by Companies Act, 2013

• SPICe+ (Simplified Proforma for Incorporating Company Electronically Plus) for incorporation

• Transfer of business assets via proper legal agreement

• Tax neutrality under Section 47(xiv) of Income Tax Act (subject to conditions)

Comparison Table

Post-Conversion Actions

• Apply for a new GST in Company’s name

• Update all licenses, bank accounts & contracts

• Inform clients/vendors of the new structure

• Set up statutory registers and books of accounts

• Comply with ROC, Income Tax, and audit requirements

Why Choose SSA Tax?

100% Online & Transparent Process
End-to-End Legal & Compliance Assistance
Free Business Consultation
Quick Turnaround Time
Affordable Packages with Expert Support

Client Testimonial

“We were a successful sole proprietorship but faced funding issues. SSA Tax helped us make a smooth transition to a Private Limited Company and it opened new doors for growth.”
– Aakash Mehra, Founder, CodeCraft Pvt Ltd

FAQs

Q1. Do I need to close my Proprietorship firm?
Not necessarily. It can be taken over legally by the Pvt Ltd Company.

Q2. Will there be capital gains tax?
If conditions under Section 47(xiv) are met, it's tax-neutral.

Q3. Is GST migration required?
Yes. A fresh GST registration is required for the new entity.

Q4. Can I retain the same business name?
Yes, subject to MCA approval and availability.

Ready to Scale Your Business?

Call Now: +91-9773346539/38/34
Email: info@ssatax.in
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Start Your Conversion with SSA Tax

We manage the entire process, from planning to post-incorporation compliance.

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