Conversion of Sole Proprietorship To Pvt Ltd

Startup @ Rs. 12000 + Govt fees

Conversion of Sole Proprietorship To Pvt Ltd

Small Business can be easily started with Sole Proprietorship due to less compliance requirement; it is the smallest form of business organisation. Though there are certain advantages of Sole Proprietorship concern but it has many disadvantages when compared to a limited company. When the business starts growing, more funds are required to capture market and opportunities. An investor feels more secure and has peace of mind while investing in a limited company rather than a proprietorship concern

An agreement needs to be executed by the company and the sole proprietor to convert proprietorship concern into a limited company.

Advantages of Pvt Ltd Company

Limited Liability Protection

If Shareholders/Members holds fully-paid shares of the company, they have no further liability to pay any amount even if the company is declared insolvent. It has the words ‘Private limited’ as part of its name.

Never ending characteristic

Directors or shareholders may come and go in the company, but a company never dies with the outgoing of shareholders or Directors. A company can, only be closed with the consent of shareholders or by the process given in Law.

No Criteria of minimum paid up capital

There is no requirement of minimum capital to start a private limited company.

Separate Entity

A company being a legal person is distinct from its directors and shareholders. Member cannot claim the property vested in company’s name. The company is capable of owning, enjoying and disposing of property in its own name.

Name of the Company is protected

The Registrar of companies does not allow another name which are identical, similar or nearly resembles with the existing name of a private limited company.

Key Benefits in Conversion Process

1. Transfer of Assets and Liabilities

All the assets and liabilities before conversion of the proprietary concern automatically vest in the Company after conversion.

2. No Stamp Duty

All movable and immovable properties of the firm automatically vest in the Company. No stamp duty is required to be paid on the transfer of the property neither any instrument of transfer is executed.

3. No Capital Gain Tax

As per section 47 (xiv) of Income tax Act, 1961 No Capital Gains tax shall be charged on transfer of property on conversion of Proprietorship firm into Private Limited Company

Key Conditions for availing benefit of Capital Gain Tax

  • All the assets and liabilities of the proprietary concern immediately before the Conversion become the assets and liabilities of the company.
  • The sole proprietor is allotted not less than fifty per cent (50%) of the total share holding and voting rights in the new company and such shareholding and voting rights remains unchanged for a period of five years from the date of the conversion;
  • The sole proprietor receives consideration for assets only by way of allotment of shares in the company.

Why EmpressaLegal

Professional Team:

Our team includes Company Secretaries, Chartered Accountants, Cost Accountants, and advocates who gives high quality of work. They are excel in the area of our work. Our teams intent to answer all your questions, doubt before you choose any services, they will explain all the options available to you.

We care about what we do:

We value our customer and care about their precious time. Client satisfaction really matters to us. Our team will always be in touch with you, until your assignment get completed. This is partly professional pride, partly personal ethics.

Not satisfied? We will refund your money:

If you are not satisfied with our work,we will refund the money after deducting the statutory fees paid to government.

Competitive pricing:

If you are not satisfied with our work,we will refund the money after deducting the statutory fees paid to government.

We start, run and grow your Company:

EmpressaLegal not only incorporates your company, but support your business throughout the life of business. WithEmpressaLegal you get all the Compliances, registrations required for your business done under one roof. We help entrepreneurs, work with them and provide them all the tools that are needed throughout the life of their business.

About Us is the first and still the best online business incorporation portal in India. The company was founded with the singular objective of offerings the highest quality corporate and incorporation services to its clients all over the globe. provides fast and instant end-to-end business incorporation and a variety of other associated services. In addition to business incorporation, we have also built a reputation as one of the best companies to refer for services like NGO registrations, Tax registrations, business licenses, and a whole line of other legal and legal associated services. Since its foundation, has helped entrepreneurs across India to incorporate their businesses in a fast and secure manner. With the company in place, Indian entrepreneurs no longer have to go through the hassle of doing numerous paper work or following processes that they know nothing about. All they have to do is get in touch with us and we shall guarantee delivery of service in a hassle free environment and in the shortest possible time without compromising on quality.