Convert Proprietorship toPrivate Limited Company
Limit your liabilities and scale your business by upgrading your legal structure.
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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’.
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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/Voter ID/Driving License of Directors
Address Proof
Latest Utility Bill/Bank Statement of Directors
Photograph
Passport size photo of Shareholders and Directors
Business Address
Latest Utility Bill of registered office address
NOC
No Objection Certificate from owner of office
Rent Agreement
Rent Agreement of registered office (if any)
Notarization
Notarized documents for NRI/Foreign Nationals
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
Fill Form
Select package, fill form in 10 mins & make payment.
Expert Help
Consultation, DSC Procurement, Name Application & Drafting.
Incorporation
Certificate of Incorporation, PAN & TAN Application.
Process Timeline
- 1
Day 1 - 2
Collection & Review of Documents · Application for Digital Signature (DSC)
- 2
Day 3 - 7
Name Availability Check & Finalization · Drafting MoA, AoA & Other documents
- 3
Day 8 - 10
Name Reservation (SPICe) · Filing Registration, DIN, PAN & TAN App
- 4
Day 11 - 16
Private Limited Company Incorporated · *Subject to Govt 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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