Convert Proprietorship

into Private Limited

Starting at ₹7,399 – Expert Assistance for Quick Conversion

Trusted by 5000+ clients, we ensure seamless conversion from sole proprietorship to private limited company with legal and financial compliance

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4.8 Ratings by Trusted Clients

Convert Your Sole Proprietorship to a Private Limited Company

About the Service

Converting a sole proprietorship to a private limited company is a strategic step for business growth, legal protection, and credibility. A sole proprietorship lacks a separate legal identity, meaning the owner is personally liable for all business obligations. Transitioning to a private limited company provides limited liability protection, allowing the business to operate as a separate legal entity.

A private limited company structure also opens opportunities for funding, better tax planning, and long-term continuity. With regulatory compliance handled professionally, entrepreneurs can focus on scaling their business efficiently.

This process requires proper documentation, approval from MCA, and adherence to the Companies Act, 2013. By engaging professionals, you ensure smooth incorporation without legal or procedural hurdles.

Complete Process of Converting Sole Proprietorship into Private Limited Company

Why Choose EbizFiling ?

  • Expert Guidance: Assistance from professionals experienced in company law
  • Comprehensive Support: Complete help from documentation to MCA filing
  • Transparent Pricing: Clear, upfront fees with no hidden charges
  • Quick Turnaround: Efficient processing to start your company swiftly

You may get in touch with our compliance manager on 09643203209 or email info@ebizfiling.com for free consultation on services like conversion proprietorship opc and conversion partnership private limited.

Fees for Convert Proprietorship into Private Limited

Best alternatives you get

ESSENTIAL

7399/-

(All Inclusive)

  • 2 Digital Signature Certificates
  • 2 Director Identification Numbers
  • Name Approval Application under SPICe Plus
  • Stamp duty on INR 1 Lakh Authorized Capital
  • Company Incorporation using SPICe Plus
  • Copy of e-MOA
  • Copy of e- AOA
  • e-PAN
  • e-TAN
  • 2 e-copies of Share Certificates*
  • ESIC Registration through SPICe Plus*
  • PF Registration through SPICe Plus*
  • Bank Account opening (feature) through SPICe Plus

Reasons for conversion of Sole Proprietorship to Private Limited Company

Points to make your decision easy

No Minimum Capital

A Private Limited Company can be formed with as little as Rs. 10,000 as authorized share capital.

Separate Legal Entity

The company is legally separate, so business assets and liabilities differ from directors’ personal assets.

Limited Liability

Directors’ personal assets are protected from company debts during financial distress.

Fund Raising

Private Limited Companies can raise funds from venture capitalists or angel investors.

FDI Allowed

Foreign Direct Investment up to 100% is permitted in Private Limited Companies.

Builds Credibility

Company details are publicly available, improving authenticity and business credibility.

Documents Required for conversion of Sole Proprietorship to Private Limited Company

Quick Checklist

  • PAN Card of Proprietor
  • Aadhaar Card or Voter ID for address proof
  • Passport-sized Photographs of directors
  • Proof of Registered Office Address (utility bill, rent agreement)
  • No Objection Certificate (NOC) from landlord (if applicable)

Conversion of Proprietorship to Private Limited Company- Process flow

 

5 Easy Steps

1

Obtain DSC

2

Reserve Your Company Name

3

Submission of MOA & AOA

4

Get Company’s Incorporation Certificate

5

Get Company’s PAN & TAN

Fill a Simple Checklist

A compliance manager will get in touch with you to collect your documents along with a simple checklist. You need to fill up that checklist and submit along with your documents for verification. Our team of experts will verify the documents provided by you and take the procedure further. The compliance manager dedicated to you will keep you updated on the progress of Company Registration throughout the process.

Name Approval

Once your documents along with Checklist are submitted, we shall proceed with the application of your Digital Signature and subsequently the approval of name for your Private Limited Company. You may suggest up to three names of your choice. Names should be unique and suggestive of the Company’s business. We will proceed with application for name for your Private Limited Company in Part A of SPICe Plus form.

Registration

We will draft the MOA (Memorandum of association) and AOA (Articles of association). We will file the incorporation documents with MCA through in part B of a form called “SPICe Plus (SPICe +)” along with the subscription statement. Usually, MCA approves the forms within 4-5 days once filed and issues Incorporation Certificate with CIN. PAN & TAN are allotted alongside. You may then proceed to open your Company Bank Account.

FAQs_Ebizfiling

FAQs On Conversion from Proprietorship to Private Limited

Get answers to all your queries

  • What is the process for converting a sole proprietorship into a private limited company?

    The process involves obtaining DSC and DIN, reserving the company name, drafting MOA & AOA, filing incorporation documents, and obtaining PAN & TAN.

  • How long does the conversion process typically take?

    The conversion generally takes 15–30 days, depending on document readiness and MCA approval.

  • What are the benefits of converting a sole proprietorship to a private limited company?

    Benefits include limited liability, better credibility, access to funding, tax advantages, and perpetual succession.

  • What documents are required for the conversion?

    Documents include PAN & Aadhaar of directors, passport-sized photos, registered office proof, and NOC from landlord if applicable.

  • Can I continue business operations during the conversion process?

    Yes, your business can continue operating, but legal and financial contracts should note the pending conversion.

  • Is professional assistance necessary for conversion?

    Professional assistance is recommended to ensure compliance, proper filing, and faster approval.

  • What is the cost involved in converting a sole proprietorship into a private limited company?

    Costs start from ₹7,399, including name approval, incorporation forms, and PAN/TAN application.

  • Do I need to maintain separate financial accounts after conversion?

    Yes, a private limited company must maintain separate books of accounts and bank accounts.

  • Can foreign nationals be appointed as directors in the converted company?

    Yes, foreign nationals can be appointed, subject to DIN registration and compliance with FDI regulations.

  • Is the business liable for debts incurred before conversion?

    Yes, debts incurred before conversion remain the owner’s responsibility, but future liabilities belong to the company.

  • How is the shareholding structure defined in a private limited company?

    The shareholding structure is defined in the MOA & AOA, specifying shares held by each director or investor.

  • Do I need any additional business licenses after conversion?

    Depending on your business activity, licenses like GST, Shops & Establishment, or sector-specific approvals may be required.

  • Can a partnership firm also be converted into a private limited company?

    Yes, partnership firms can be converted through a similar process of incorporation and compliance filing.

  • What is the key difference between a sole proprietorship and a private limited company?

    A sole proprietorship has unlimited liability, whereas a private limited company has limited liability and separate legal identity.

  • Will the conversion affect existing contracts or agreements?

    Existing contracts remain valid, but it is advisable to update agreements to reflect the new legal entity.

  • Is there a minimum capital requirement for registration as a private limited company?

    No, a private limited company can be incorporated with a minimum authorized capital of Rs. 10,000.

  • Can I add new directors or shareholders after conversion?

    Yes, additional directors or shareholders can be added by filing required MCA forms and updating the company records.

  • Are there any tax benefits after converting to a private limited company?

    Yes, private limited companies can enjoy lower corporate tax rates and other deductions not available to sole proprietorships.

  • Is Foreign Direct Investment (FDI) allowed in a private limited company?

    Yes, private limited companies can receive 100% FDI under the automatic route, subject to sector regulations.

  • What are the ongoing compliance requirements post-conversion?

    Ongoing compliance includes annual filing with MCA, maintaining books of accounts, income tax filing, GST, and other statutory requirements.

Reviews

  • Client Review, Ebizfiling

    Dhruvi Agarwal

    27 Feb 2018

    They have it all! You tell them your problem and they will have you covered with their services and support. Great going, Ebizfiling.

  • Dhwani Tanna

    17 Jun 2018

    Great going Ebizfiling! We are satisfied with your services and would recommend them to others. Good luck for your future.

  • Dr. Shilpa Jerurkar

    16 Jul 2020

    I would give them a 10 star. The staff is really praiseworthy. I would like to mention specially for Ms Lata. She was available always whenever I required her. Very efficient and kept us updated about the proceedings. I strongly recommend the services of Ebizfiling India Pvt LTD for all types of Company related affairs

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