12 November 2022
Yes, new GST registration required. The proprietor should ensure compliance with the following requirements before beginning the conversion of proprietorship into company:
An agreement must be entered into between the sole proprietor and the private limited company for conversion. Know more about slump sale agreement. The Memorandum of Association (MOA) of the Private Limited Company must include an object that states – “The takeover of a sole proprietorship concern”. All the assets and liabilities of the sole proprietorship firm must be transferred to the private limited company. The sole proprietor should be a part of the company’s directorial board with a voting power which constitutes to at-least 50% of that of the company. It may be noted that a private limited company must have a minimum of two directors. The incorporation rules of a private limited company mandate the minimum share capital requirement to be Rs 1,00,000.
13 November 2022
All the companies transferring their business under GST will need to furnish the particulars in the form GST ITC-02 through the common portal along with a request for transferring the unutilized input tax credit to the electronic credit ledger of the transferee.
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