Proprietorship firm to private ltd company

This query is : Resolved

Nikhil Jain (Querist)
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07 April 2012 Dear Sir,
I have a proprietorship firm since 6 years and now I want to convert it to a private ltd company. I have already got a company registered under company's act. Now what is the procedure for conversion. Will my excise and tin no. change. Kindly guide me steps.
Thanks in anticipation.
Regards,
Nikhil Jain.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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07 April 2012 Dear Nikhil,

I would like to advise you to appoint a CA in local who can suggest you all the effects of conversion.
like taxation, company matters, legal etc.It will not cost much for such due diligence.
It involves detailed procedure in all aspact. So, it is advisable for you to appoint a Practising CA.
Thanks

Nikhil Jain

Nikhil Jain (Querist)
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07 April 2012 Thank You Mr. Amit,
I have already appointed a CA but I had few doubt which I thought to get it clarified.

My CA has incorporated a new company. Now he is asking to get it registered with sales tax and excise department again freshly. And he wants to shut the proprietorship firm or if I wish I can continue transaction on proprietorship firm also. What I want is to continue the goodwill of my proprietorship firm. If I am giving my company profile or offer letter to any new customer, I should be able to say it is a 6 year old company and annual turnover is over 50 crores.

I get sales order depending on my experience and turnover i.e. if I give quote to any company saying mine is a newly incorporated company I doubt I would hardly receive any orders.

Kindly clarify my doubts.

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Tareq Imam

Tareq Imam (Expert)
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07 April 2012 What you have done is started a fresh company.
but if you want to convert your business to private limited and claim seniority the procedure is different.

Nikhil Jain

Nikhil Jain (Querist)
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07 April 2012 What is the process then..