A Private limited company offers significant advantages over the Proprietorship form of business, including that of limited liability, ability to attract equity capital, continued existence and more.
AVALON has a great Package for the conversion of the Proprietorship to the Private-Limited company.
OFFER VALUE: Rs 15,000/-
This includes the following:
# Drafting of the Conversion Application Form INC-1 for filing to ROC.
# Initiate the NAME-RUN check with MCA for the new Private Limited company.
# Drafting of the new MOA & AOA.
# Ensure a Minimum capital of Rs 1.0 lacs for the new company.
# Obtain new DIN for the new Director & existing Proprietor.
Requirements for Conversion
- The Memorandum of Association (MOA) of the Private Limited Company must include an object that states – “The takeover of a sole proprietorship concern”.
- All the assets and liabilities of the Sole proprietorship firm must be transferred to the Private limited company.
- The Sole proprietor will be one of the Directors & will have a voting power which constitutes to 50% of that of the New Company board.
- The incorporation rules of a Private Limited company mandates that the Minimum Share capital is to be at least Rs 1, 00,000.
Conversion from a Proprietorship to a Private limited company will need of the following documents:
- Basic ID and Address proof of the directors.
- Letter of Authority/POA.
- Proof of registered office address, which could be a copy of the utility bill, rent agreement, sale deed and the likes of it.
The concerned person needs to furnish Form 1, Form 18 and Form 32.
The documents and forms mentioned here should be uploaded on the website of the Ministry of Corporate Affairs (MCA).
Certificate of Incorporation
After the completion of all the procedures specified above, the MCA validates the prescribed compliance requirements and issues the Private limited company- Incorporation certificate.