Convert Proprietorship to Private Limited Company
Limit your liabilities and scale your business by upgrading your legal structure.
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Convert Proprietorship to Private Limited Company
Why Convert?
Most of the business in starting phase preferred to register as a Proprietorship firm because of its lower compliance requirements. With the growth of the business, it is advisable to take action to limit the liabilities and reduce the burden of compliance on a single person, for the same the best option is to convert the proprietorship firm to a Private Limited Company.
For converting a proprietorship firm to Private Limited Company, promoters of the company must have enter to an agreement which is to be made for selling the business. The conversion from proprietorship to Private Limited Company must have clearly mentioned in the Memorandum of Association as ‘Takeover of a proprietorship firm’.
Benefits of Conversion
Easy Fund Raising
Private Limited Company registration makes this structure credible among others which make fundraising or borrowing from external sources easier (Private equity, ESOP, etc).
Separate Legal Existence
The company separates itself from its owners and managers. It can operate on its own name, own assets, and sue third parties in case of any defaults.
Owners’ Limited Liability
The company’s obligations do not create a charge over the owner’s personal assets. Liability stays limited only to the capital subscribed.
Management Separation
Separate ownership and management help both focus on their potential works. Shareholders assign responsibility without losing control.
Documents Required
PAN Card
PAN Card of shareholders and Directors
Passport
Foreign nationals must provide a valid passport.
Identity Proof
Aadhaar card and Voter ID/ Passport/ Driving License of Shareholders and Directors
Director’s Address Proof
Latest Telephone Bill /Electricity Bill/ Bank Account Statement of Shareholders and Directors
Photograph
Latest Passport size photograph of Shareholders and Directors.
Business Address Proof
Latest Electricity Bill/ Telephone Bill of the registered office address
NOC from owner
No Objection Certificate to be obtained from the owner(s) of registered office
Rent Agreement
Rent Agreement of the registered office should be provided if any
Notarization
In case of NRI or Foreign National, documents of director (s) must be notarized
Formulation of Company Name
Build a Unique Identity
Identification plays an important role in making a business outstand in competitive market. Consumers should identify activity of your business from the brand name. Make sure the brand name is short, easy to remember and simple to pronounce.
Constitution Type
Name of the company must end with "Private Limited" (Pvt.Ltd) as a suffix.
Convert in 3 Easy Steps
- 1
Step 01 · Fill up the registration form
- Select any package suits your requirement
- Fill up the form which will take less than 10 minutes
- Make payment through secure payment gateway.
- 2
Step 02 · BookMyTM is Here to Help
- Your queries will be answered quickly and effectively
- Provide details & upload documents required for Pvt. Ltd Company registration
- Procurement of Digital Signatures (DSC)
- Application for company name registration
- Documents drafting including MOA and AOA
- 3
Step 03 · Your Private Limited Company is incorporated.
- Certificate of Incorporation
- Application for PAN and TAN
- All it takes 10 to 16 working days*. *Subjected to Government Processing Time.
Process Timeline
- 1
Day 1 – 2
- Collection of Information
- Collection of required documents (Scanned copies)
- Review of documents and information provided
- Application for Digital Signature (DSC)
- 2
Day 3 – 7
- Checking the availability of Name
- Finalizing the name with the directors
- Drafting MoA, AoA & Other required documents
- Review and confirmation form directors
- 3
Day 8 – 10
- Name Reservation under SPICe
- Filing company registration application
- DIN allotment application
- Application for PAN and TAN of company
- 4
Day 11 – 13
- Name reservation application under SPICe
- Filing company registration application
- DIN allotment application
- Application for PAN and TAN of company
- 5
Day 14 – 16
- Your Private Limited Company is incorporated.
- *Subjected to Government Processing Time
Frequently Asked Questions
A DIN is a unique identification number issued by the Ministry of Corporate Affairs (MCA) to individuals appointed as Directors of a company or Designated Partners of an LLP, used to verify their identity in official records.
A new DIN is allotted automatically during the registration process of a company or LLP. You can also apply separately for a DIN for a proposed Director or Designated Partner.
You must have a minimum of 2 shareholders and 2 directors to incorporate a Private Limited Company.
Shareholders may be individuals, companies, or LLPs. Directors must be individuals only; corporate entities cannot be directors.
The MOA is the founding charter of the company. It outlines the company's name, registered office state, objectives, authorized capital, and the initial subscribers' details. It must be signed by the subscribers and witnessed.
The AOA defines the company's internal rules, governance structure, directors' powers, and members' rights. In a Private Limited Company, it typically includes restrictions on share transfer.
<strong>Authorized Capital:</strong> The maximum share capital a company is permitted to issue.<br><strong>Paid-up Capital:</strong> The actual capital received from shareholders. Paid-up capital must always be less than or equal to the authorized capital.
Yes, provided all the activities are mentioned in the MOA and approved by the ROC. However, unrelated activities that fall outside the scope of the company cannot be combined under the same company.
Yes—subject to Foreign Direct Investment (FDI) norms. If foreign shareholding exceeds 50%, the entity is classified as a foreign company.
No. All documents are submitted and digitally signed online; no in-person presence is required.
Within 30 days: Open a current bank account, appoint a statutory auditor, deposit paid-up capital, and issue share certificates.
Every year: Conduct one AGM, hold at least four Board Meetings, and file audited financial statements (Form AOC‑4) and annual return (Form MGT‑7) with the ROC.
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