CONVERSION OF PROPREITORSHIP TO PVT LTD

  • Perpetual Succession: Company enjoys the status of perpetual succession as it does not come to an end if the shareholders or members cease to exist.
  • No capital gains tax: No Capital Gains tax shall be charged on transfer of property from Proprietorship firm to Private Limited Company.
  • Limited liability: Businesses often need to borrow money. In a private limited company, only the amount invested in starting the business would be lost; the directors’ personal property would be safe.

PROCUEDRE & DOCUEMENTS REQUIRED

  • Step 1: Obtaining Digital Signature Certificate
  • Step 2: The directors should apply for DIN.
  • Application is required to be made in Form INC-29.

Documents Required

  • Affidavit by the Sole Proprietor
  • Statement of Assets & Liabilities as on date by Chartered Accountant.
  • Income Tax Returns Acknowledgement.
  • PAN Card of the Sole Proprietor.
  • Sales Tax Registration Number
  • Any other Proof showing the name of the Proprietorship firm