By converting sole proprietorship concern into private limited company, you will be able to give your business corporate outlook and also enjoy the benefits which a company has to offer such as separate legal identity, shared liability etc.
Procedure for Conversion
A new private limited company has to be incorporated which will take over the sole proprietorship concern
Any person above 18 years can become a director. Non-residents can also become director of Indian companies.
A private limited company must have a minimum of 2 directors while the maximum no. of directors can be upto 15.
ID proof and residence proof of all the proposed directors, PAN card is mandatory for Indian nationals. No objection certificate from the owner of registered office or lease agreement must be produced.
Company’s proposed name should be unique i.e., it should not be identical to any existing name. Names that infringe others’ rights, trademarks or patents are likely to be rejected by ROC.
Digital signature is process to authenticate and validate records electronically. DSC is required for every director of the company as the Ministry of Corporate Affairs (MCA) mandates digital signature of directors on some documents.
DIN is a unique identification number which is allotted to all the directors existing or proposed. DIN can be obtained by filing e-form DIN1 in MCA portal.
Every private limited company must hold a board meeting atleast once in every three months and an Annual general meeting (AGM) every year.
Yes, Companies Act 2013 provides rules for converting a private limited company into a public limited company.
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