Proprietorship to Private Limited Company Registration in Jaipur
The sole proprietorship is the easiest business form under which one can start a business. The sole proprietorship is not a legal person under any act . It simply refers to a person or a group of persons who owns and runs the business and is personally responsible for its liabilities. A sole proprietorship can operate under the name of its owner or any other trade name. but a name different than the owner name does not create a legal entity separate from the sole proprietor owner.
- Private Limited Company is a Separate legal entity from its owner
- Liabilities of the members or owners are limited.
- Private limited are eligible get certain tax benefit on their expenditure
- A incorporated body can easily attract fund as compared to sole proprietor
- A private company can grow its business at multiple levels.
- we have two options whether we can incorporate a fresh private limited company and then can merge the sole trader into it, or we can merge the sole business into any existing incorporated company. We the Legal bank with the help of our expert professionals will provide you conversion options as per your suitability and requirement of you.
- MOA of the private limited company should have a clause to take over the sole proprietorship in the object clause of the memorandum of association, if there is no such clause it should be changed accordingly We the Legal bank with the help of our expert professionals will provide you an amendment in the memorandum of association of Company in minimum time.
- then all business assets will have to be transferred to the Private Limited Company, including the novation of existing contracts of the old business.
- capital gain in case of the transfer of the asset is exempted in the section 45 of the income tax Act, 1961
- if a sole trader has occurred some GST liability then he needs to be paid the same.