Convert a Sole Proprietorship to Private Limited Company

All you need to do is go ahead and start a private limited company and submit an agreement between the sole proprietor and the private limited company, declaring that all the assets are to be transferred to the latter.

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Why should you register your Company? 

Registering a company offers many benefits. A registered company makes it genuine and increases the authenticity of your business.

  • Shields from personal liability and protects from other risks and losses.
  • Attracts more customers
  • Procures bank credits and good investment from reliable investors with ease.
  • Offers liability protection to protect your company’s assets
  • Greater capital contribution and greater stability
  • Increases the potential to grow big and expand
  • You will also get Zero Balance Current Account – Powered by DBS Bank *

Proprietorship to Private Limited Company

As the proprietorship has almost no definition, besides that given to it by one of the many licenses you can take to get one (SSI or GST registration, for example), transferring the business to a private limited company is easy. All you need to do is go ahead and start a private limited company and submit an agreement between the sole proprietor and the private limited company, declaring that all the assets are to be transferred to the latter.

Advantages of Private Limited Company

Limits Members’ Liability

Businesses often need to borrow money. In structures such as General Partnership, partners are personally liable for all the debt raised. So if it cannot be repaid by the business, the partners would have to sell their personal possessions to do so. In a private limited company, only the amount invested in starting the business would be lost; the directors’ personal property would be safe.

Investment-ready

Private limited companies easily accommodate equity funding as there is a clear distinction between shareholders and directors as well as limited liability. In fact, venture capitalists and private equity funds are unlikely to invest in any other structure. This is because LLPs would require them to become partners in the business, while an OPC can have only one shareholder.

Better Debt-taking Capacity

A private limited company has more options for taking on debt than LLPs. Not only are bank loans easy to obtain (relative to OPCs and LLPs), the option of issuing debentures and convertible debentures are always available to it.

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Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry’s standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letrase

OUR PROCESS

WHY START-UPS PREFER PRIVATE LIMITED COMPANY AS A BUSINESS FORM?

The Private Ltd Company is one of the most preferred business legal forms by growing Indian start-ups. A private limited company can fulfill the requirement of raising funds from private investors easily; attract less tax and is a separate legal entity with perpetual succession which is restricted to other business types. Find out more.

Why Accountry

20 WORKING DAYS

Just tell us a little bit about your business and you’ll have the incorporation certificate in 20 working days. Just this month we’ll be handling 400 other such requests.

9.1 CUSTOMER SCORE

We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 STRONG TEAM

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we’ll try to ensure that your doubts are cleared before they even arise.

ASSURED CUSTOMER SATISFACTION

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