Conversion of propreitorship into pvt limited company
This query is : Resolved
23 April 2015
Hi,,,,, Can anybody tell me the procedure to convert proprietorship firm into private limited company???its urgent
24 April 2015
There is no direct procedure for conversion of proprietorship into private limited company.
You first need to incorporate a new company (with one of the main object of taking over the business of proprietorship). Once it is incorporated, the Company should take over its business.
You first need to incorporate a new company (with one of the main object of taking over the business of proprietorship). Once it is incorporated, the Company should take over its business.
24 April 2015
But sir i dont want to incorporate a new company because i have already a company and that company want to takeover proprietry business in which there is 2 directors out of which no one is proprietory. Pls provide suitable option
24 April 2015
Can you please brief me more about your query?
24 April 2015
sir, i have a old company whose business is traveling but now i have applied for its change in object clause and name cluase and want that, that company will take over the business of proprietor ship firm in which proprietor is Mr.s Gita but the director of that company is Mr. Rohit and Ujjwal. Now the object of the company is to do a business of even management which is business of proprietorship firm.Pls tell the solution????
24 April 2015
You can consider following points.
1. You need to include 'to take over business of proprietorship' in main object clause.
2. Since the company is taking over the business of Mrs. Gita, the Company is required to pay consideration (as Purchase Consideration) to Mrs. Gita for purchase of business. Such consideration can be in cash or in kind that means the Company can also issue shares of the Company to Mrs. Gita in consideration of sale of her business. But this entire arrangement completely depends on the parties to this deal.\
3. If the Directors want, Mrs. Gita can also be a Director of the Company.
In short, it is purely a business deal between the Company and proprietor.
In terms of procedure, as you mentioned, you need to change the Name and main object of the Company. The Company also needs to enter into an Agreement with Proprietor for Taking Over of the Business.
1. You need to include 'to take over business of proprietorship' in main object clause.
2. Since the company is taking over the business of Mrs. Gita, the Company is required to pay consideration (as Purchase Consideration) to Mrs. Gita for purchase of business. Such consideration can be in cash or in kind that means the Company can also issue shares of the Company to Mrs. Gita in consideration of sale of her business. But this entire arrangement completely depends on the parties to this deal.\
3. If the Directors want, Mrs. Gita can also be a Director of the Company.
In short, it is purely a business deal between the Company and proprietor.
In terms of procedure, as you mentioned, you need to change the Name and main object of the Company. The Company also needs to enter into an Agreement with Proprietor for Taking Over of the Business.
24 April 2015
But sir, i have already applied for INC -1 on mca in which i forget to enter object of taking over the business of proprietorship firm so what can i do right now???
24 April 2015
No need to worry. It would be fine even if you have not mentioned the same in INC-1.
Generally, you need to have 'Takingover of business of Proprietorship' in main object at the time of incorporation of a company. Since your company already in existence, i dont think that there will be any problem.
And the object mentioned in INC-1 will not be pre-filed.
Generally, you need to have 'Takingover of business of Proprietorship' in main object at the time of incorporation of a company. Since your company already in existence, i dont think that there will be any problem.
And the object mentioned in INC-1 will not be pre-filed.
24 April 2015
OK SIR THANK YOU SO MUCH FOR YOUR SUCH HELPFUL AND PROMPT REPLY. THANK U ONCE AGAIN.
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