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Can we upgrade from proprietorship to pvt limited

643 views 2 replies

ziya khan

Student Others

61 Points Posted on 22 May 2014

Hi there,

I have registered a company as a proprtrshp and want to upgrade it to a pvt limited company, someone told me that this can not happen and it would be a fresh company, and i do not want to change the bank account as well as i credit salary to my employees to the bank account, so plz tell me what to do..

Replies (2)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Posted on 22 May 2014

where have you registered your co. as proprietorship? unable to understand your question.

Pradip

Accountant/Management

106 Points Posted on 23 May 2014

Dear Ziya

As the name of Private Limited Co. must suffixed by Pvt. Ltd. hence your current company name will not be same. Suppose you running your business as a proprietory concern viz. ABC if you wish to upgrade in Pvt. Ltd. Co. the name may be ABC Pvt. Ltd. It will also depend on the availibity of name. The main object to incorporate the company will be to takeover of proprietorship business. You can continue all the bank accounts under proprietorship name but the real proprietor will be new pvt. ltd. co. You can run your business under name and style ABC (A Unit of ABC Pvt. Ltd.). You have to apply for change in status of your business in Sales Tax, Service Tax and any other statutory registration if applicable.