conversion of propriety firm to limited company


This query is : Resolved 

(Querist)
02 June 2009 can any one explain me the procedure of conversion of propriety firm to private limited company

02 June 2009 Dear Archana,

The procedure for the conversion of a firm in to a private limited company is as under:

1. Check the availablility of a Name for the Company in Form 1A.

2. Do the formalities for the formation of a Pvt.Ltd. Company with a minimum paid - up share capital of Rs.1,00,000/- to be subscribed by minimum 3 subscribers and minimum 2 Directors

3. Make an Agreement with the Firm for the transfer of assests and liabilities with the Company.

4. If the shares are allotted (other than initial subscription of minimum paid-up capital) other wise than in Cash then file Form 23 & 2 for the same and follow the procedure for issuance of shares u/s 81(1).

5. after completing all the necessary formalities, get the registration of the firm cancelled from the I.T. Dept.

With Regards,

Ashish Shah


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