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conversion of sole proprietor into pvt co

07 February 2018

Is it possible to convert sole proprietorship into private company? Companies Act, 2013 is silent about this. if any case laws I can refer for the conversion.

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Sripriya Parthasarathy (24 Points)
Replied 08 February 2018

This can be done by floating a new private company. There is no specified procedure for conversion given in the act because sole proprietorship doesn't have a separate legal status so the assets and liabilities of the sole proprietorship shall be considered as that of the proprietor. So converting a sole proprietorship into a private limited company is as good as floating a new private company.
One person company is recommended for the conversion of sole proprietorship into a company

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