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LEGAL TEMPO

All Legal Services Under One Bucket

  • Trade Mark Registration, Copyright Registration, Company Incorporation, Company Registration, Logo Registration, Trade Mark Search, Trade Mark Opposition, Divorce Lawyer Delhi Shipping Disputes, Debt Recovery, Import Export, Insurance Claim, Business Contract, Lease Agreement, Arbitration, Consumer Lawyer, Deficiency in Service, Cheque Bounce, Custom Duty, G.S.T, GST Show Cause Notice, Design Registration, Patent Registration

    Proprietor to Private Limited Company

    Conversion of Sole Proprietor to Private Limited Company

    Many business people start their businesses as a Sole Proprietorship due to the low compliance requirements. As the business and the incomes grow, there is a need to separate the bank accounts and the tax filings of the Sole Proprietor and that of the business. To accomplish this separation a possible solution is to convert the Sole Proprietorship into a Private Limited Company.

    To convert a Sole Proprietorship into a Private Limited Company, an agreement has to be executed between the Proprietorship and the Private Limited Company (once it is incorporated) for the sale of the business. Further, such Private Limited Company so incorporated must have “the takeover of a Sole Proprietorship Concern” as one of the objectives in its Memorandum of Association..