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Convert a Proprietorship Firm to a Private Limited Company

Sole-Proprietorship does not have a strong business identity of its own, apart from Service tax registration, which is the only proof of the existence of a Proprietorship company. Hence, it is easy to convert a Sole Proprietorship into a Private Limited Company. An agreement between the two has to be made wherein it is stated that the assets are transferred from the Proprietorship Company to a Private Limited Company.

Advantages of Setting Up a Convert a Proprietorship Firm to a Private Limited Company :

  • Limited Liability of Shareholders and Directors
  • Legal Entity Separate from Its Members
  • Shareholding Can Be Easily Transferred
  • More Weightage Given By Financial Institutions for Funding Purpose
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