Conversion of proprietorship into pvt. ltd.

Well as far as my knowledge is concerned...

1) While forming a new company, You need to include that the intention of the company is to acquire sole proprietorship in Main Object of company..

2) After incorporating it, you need to inform to all debtors and creditors of proprietorship firm that now this firm is acquired by XYZ pvt ltd co. And you need to take the signature of all in such format of intimation.

Wait for others to comment, Experts please correct  if i am wrong..

Regards

CA Darshak Shah

Thank you Dashrath for your valueable comment....

My main purpose for this conversion is to book the fixed assets of the prop. in the company...

what if I incorporate a new company and then transfer the fixed assets to the company and in consideration credit the Director's loan... I think in that case there will be some capital gain or loss, but it will be simple procedure then conversion....

Experts please comment....