A registered company can make a conversion of sole proprietorship registration online or partnership in to private limited to get advantage and privileges of private limited company. Now a day’s existing proprietorship and partnership companies forced to convert Pvt Ltd Company because of participating tenders, issuing shares and getting loans.
If the company having asset stamp duty will occur in transferring asset to new entity. Also the liabilities will carry forward to the new concern. If the company registered with registrar of companies, all the statutory. Documents will be available for the public. People more trusted on Pvt Ltd companies because of transparency of accounts and audit report available to public.
Now a day’s Private limited company registration is more trust worthy and transparent to the public. The audited balance sheet and profit and loss account will be available to public hence public can Watch the financial position and regulatory compliance. All the companies’ data’s available in registrar of companies which contain all the information of the company.
While conversion the name availability has to check sometime the running business name may not be available. The name availability also needs to search with trademark registration because registrar of companies instructed to avoid similar name approval.
Finally after completion of conversation the proprietor or partner can be director of the new company and the shares of the new company registration will be proportionally allotted to the partners. Limited liability certificate will be add to the new name and the liability will be limited the share held by the company.
Also require to maintain board minutes and statutory register for the limited company. All the asset and liabilities of the old company will be transfer to the new company. The sales tax registration and service tax will be change to new company.
