07 April 2012
Dear Sir, I have a proprietorship firm since 6 years and now I want to convert it to a private ltd company. I have already got a company registered under company's act. Now what is the procedure for conversion. Will my excise and tin no. change. Kindly guide me steps. Thanks in anticipation. Regards, Nikhil Jain.
I would like to advise you to appoint a CA in local who can suggest you all the effects of conversion. like taxation, company matters, legal etc.It will not cost much for such due diligence. It involves detailed procedure in all aspact. So, it is advisable for you to appoint a Practising CA. Thanks
07 April 2012
Thank You Mr. Amit, I have already appointed a CA but I had few doubt which I thought to get it clarified.
My CA has incorporated a new company. Now he is asking to get it registered with sales tax and excise department again freshly. And he wants to shut the proprietorship firm or if I wish I can continue transaction on proprietorship firm also. What I want is to continue the goodwill of my proprietorship firm. If I am giving my company profile or offer letter to any new customer, I should be able to say it is a 6 year old company and annual turnover is over 50 crores.
I get sales order depending on my experience and turnover i.e. if I give quote to any company saying mine is a newly incorporated company I doubt I would hardly receive any orders.
07 April 2012
What you have done is started a fresh company. but if you want to convert your business to private limited and claim seniority the procedure is different.
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