Conversion of 2 proprietorship into one pvt. ltd.

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Priyanka Mahajan (Querist)
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03 June 2013 Dear Experts,

Can two sole proprietorship having same businesses be converted into a single Pvt. Ltd. Company?

Please reply....

CA Kapil Verma

CA Kapil Verma (Expert)
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03 June 2013 yes , if The proprietor is the same person.

but if not , you can first convert one proprietorship into company

and after some time new Pvt. Ltd. company take over the other One.

Priyanka Mahajan

Priyanka Mahajan (Querist)
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03 June 2013 Thanks kapil, what if both businesses are different? Can you please tell me the procedure of such conversion?

CA Kapil Verma

CA Kapil Verma (Expert)
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03 June 2013 no issue- Include the take over of both proprietorship as main object of new company.

and other formalities are the same as incorporating New company.

Priyanka Mahajan

Priyanka Mahajan (Querist)
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03 June 2013 sorry i confirm from proprietor businesses are same, please tell me the procedure for such conversion. According to me its same i just need to insert a main object "to take over the running business of M/s .... & M/s ......

CA Kapil Verma

CA Kapil Verma (Expert)
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03 June 2013 yes,
you just need to add in main object " to take over the running business of m/s........"

other formalities are same as new company.

Priyanka Mahajan

Priyanka Mahajan (Querist)
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03 June 2013 Thanks Kapil,

Should i need to attach any affidavit?

CA Kapil Verma

CA Kapil Verma (Expert)
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03 June 2013 no , not required

but make sure that the same proprietor has at least 51% share in Pvt Ltd.

Priyanka Mahajan

Priyanka Mahajan (Querist)
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06 June 2013 Dear Experts,

I got the resubmission for want of firm papers which i am converting into Pvt Ltd.
Will the bank statement be enough proofs for the same? or should i attach some other papers?

pls reply

CA Kapil Verma

CA Kapil Verma (Expert)
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06 June 2013 attach ,

1. Bank Statement
2. B/s & p/l of last year, sign by Prop.

Priyanka Mahajan

Priyanka Mahajan (Querist)
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06 June 2013 As the return of prop. filed in sec 44AD, we dont have their balance sheet

CA Kapil Verma

CA Kapil Verma (Expert)
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06 June 2013 the firm must has any registration paper like: Service tax or up vat .

Priyanka Mahajan

Priyanka Mahajan (Querist)
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06 June 2013 What if they don't have any registration? It would be very late now if i apply for any registration now. One of the company has a shop & establishment license but it has been expired on 31st March 2012. But can i use it

CA Kapil Verma

CA Kapil Verma (Expert)
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06 June 2013 no
In that case attach

1. Bank Statement
2. ITR full form (if name of firm is mention in business description.)

if Name is not available in ITR. do attach bank statement only and let see what reply received from Mca.

Priyanka Mahajan

Priyanka Mahajan (Querist)
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06 June 2013 bt if i receive again resubmission then
how many times mca will give me opportunity to file against that fees? Is their any limit of resubmission?

CA Kapil Verma

CA Kapil Verma (Expert)
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06 June 2013 yes it 5 times. just try ones and also update me.

CA Kapil Verma

CA Kapil Verma (Expert)
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07 June 2013 hope your problem is solved now.

Priyanka Mahajan

Priyanka Mahajan (Querist)
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07 June 2013 it will be solved only after i will get the name approved.

but i ask in MCA they said i will get the chance for re submission only for 2 times. so, dont want to take risk

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