Business Registrations • Conversions

Proprietorship to Pvt Ltd Company

The process of converting a Sole Proprietorship into a Private Limited Company, transferring the business and its assets/liabilities to the newly incorporated company.

Who needs it

Growing proprietorships wanting limited liability, better funding access, and a formal corporate structure.

Authority / law

Ministry of Corporate Affairs (MCA), Companies Act 2013

Documents generally required

Proprietorship's PAN & GST details; takeover/slump sale agreement; PAN & Aadhaar of proprietor (as director/shareholder); registered office proof; MOA & AOA; DSC & DIN.

FAQs

Does the proprietorship's PAN carry over to the company?

No, the new Private Limited Company gets its own PAN as it is a separate legal entity.

What happens to existing licenses/contracts?

They generally need to be transferred or reapplied for in the new company's name.