Conversion of Proprietorship to Pvt. Limited Company

Hello All !!!

I want to convert sole proprietorship into a Pvt. Limited company.

Question :

1. Should I take new registration number for VAT, CST & Excise.

2. As per my research, if some conditions are satisfied as per I.T. rules, Capital Gain Tax on transfer of asset from proprietor to Company, shall not attract Tax. Is it correct? If no, then please clarify.

3. As per reseach, It has been found that company should mention in its object clause, "takeover of sole Proprietorship firm". Then it shall be easy to proceed. Is it correct? Idf No, Please clarify.

Please give answers at your earliest.

Replies (1)

No new registration is not required.

First you need to complie with all the condition applicable in case of pvt companies than make an appliction to MCA for registering as a Company.

Here the question is conversion not take over so I dont think it is compulsory.

But you can also take over the firm by first Incorporate a Pvt. Company after mentioning in the MOA the "take over clause"

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