Proprietorship to Private Limited Company

Many business people initiate their business as a Sole Proprietorship owing to the low compliance requirements. However as the business and the income grows there is a requirement to disparate the bank accounts and the tax filings of the Sole proprietor and that of the business. To effectuate this separation a possible solution is to transfigure the Sole Proprietorship into a Private Limited Company.

To transfigure a Sole Proprietorship into a Private Limited Company, an agreement has to be implemented between the Proprietorship and the Private Limited Company (once it is inaugurated) for the sale of the business.

Furthermore such Private Limited Company assimilated must possess the “Acquisition of the Sole Proprietorship Concern as one of its main objectives in its Memorandum of Association.

Conditions for Conversion