What is the procedure for conversion a Proprietorship Firm into a company?

For the purpose of conversion of a sole Proprietorship Firm into a company at least two individuals are required, out of which one shall be the existing proprietor. Preparation of DSC and DIN of all proposed Directors Preparation and Filing of name application through web form RUN through MCA portal. Preparation and filing of Eform URC 1, Eform spice, Eform Spice MOA &Eform Spice AOA Appropriate Government fees is payable depending upon the authorized capital of the company. Issuance of Certificate of incorporation along with PAN and TAN.

What are some key/ basic documents required for conversion of a Proprietorship Firm into a company?

Particulars of members along with the proposed shareholding ratio Declaration of two or more directors verifying the particulars of all members Copy of Newspaper advertisement in prescribed format Relevant certification from a CA/CS/CWA; etc. Declaration/particulars as per DIR 8, DIR 2, 16(1), INC 9 Bank Statement with current transactions KYC documents Electricity Bill, Rent Agreement, NOC by the owner of Registered office Dissolution Deed NOC unsecured creditors & secured creditors  

What are some key benefits/ reasons for conversion of Proprietorship Firm into a company?

Investors prefer corporate structures over Proprietorship Firms. The liability of the members or the directors are limited in case of a company whereas in case of Proprietorship Firm the liabilities are unlimited A company is more transparent structure of business as compared to Proprietorship Firm The benefit of startup recognition under the startup India scheme of the government of India can be availed by a company and not by any Proprietorship Firm. The company has a separate legal identity as compared to a Proprietorship Firm. There is a separation of ownership and management in a company, whereas in Proprietorship Firm,...