Convert Proprietorship to Pvt Ltd

How It Works

1. 1

   Obtain Digital Signature Certificates

   All proposed directors must obtain Class 3 DSCs from a certified authority. This is required to digitally sign all MCA filings including the SPICe Plus form.

2. 2

   Apply for Director Identification Numbers and Reserve Company Name

   Use the SPICe Plus Part A to apply for DINs for new directors and reserve the proposed company name. The name must comply with MCA naming guidelines and not be identical or similar to existing companies.

3. 3

   Incorporate the Private Limited Company via SPICe Plus

   File SPICe Plus Part B along with the e-MoA, e-AoA, AGILE-PRO-S, and INC-9 declarations. The MCA will issue a Certificate of Incorporation with a CIN upon approval.

4. 4

   Execute Business Transfer Agreement

   Draft and execute a comprehensive Business Transfer Agreement or slump sale deed transferring all assets, liabilities, goodwill, contracts, and intellectual property of the proprietorship to the newly incorporated company at an agreed consideration.

5. 5

   Transfer Assets and Obtain Fresh Registrations

   Open a company bank account, close the proprietorship account, transfer physical assets, and apply for fresh GST registration, MSME registration, FSSAI, and any other applicable licenses in the company's name.

6. 6

   File Statutory Returns and Complete Tax Formalities

   File the commencement of business declaration in Form INC-20A within 180 days of incorporation. Compute capital gains tax on the slump sale, file the final ITR of the proprietorship, and ensure GST transition is handled correctly.