Snapshot on conversion of Sole Proprietorship to Private Limited Company
As and when business grows, there is need for funds and Private limited companies can easily accommodate equity funding or can raise bank loan easily. Also licenses are required to trade globally. Hence there is need to form a private limited company.
To convert a Sole Proprietorship into a Private Limited Company, an agreement has to be executed between the Proprietorship and the newly Private Limited Company for the sale of the business. Further, such Private Limited Company so incorporated must have a specific clause which permits the new company to acquire the businesses and also the assets and liabilities of of a Sole Proprietorship Concern.
We at VyaparFormations would assist you in converting the status to Private Limited Company.