ZHEWITRA 10 MG

Before going through the process of conversion of Sole Proprietorship to Private Limited Company and its benefits, let’s have a quick look at what is a Sole Proprietorship and a Private Limited Company. In a Private Limited Company, a member’s liability is limited to the number of shares he or she holds. Benefits of conversion of Sole Proprietorship to Private Limited CompanyCapital growth: The equity of a sole proprietorship is restricted to the money of owners, whereas a Private Limited Company has financing possibilities and can raise more capital for expansion. Requirements for conversion of Sole Proprietorship to Private Limited CompanyThe following are the requirement for the conversion of a Sole Proprietorship to a Private Limited Company:A slump sale agreement must be entered between the Sole Proprietorship and Private Limited Company to transfer all the assets and liability. The Private Limited Company will enjoy the benefits of limited liability, separate legal entity, fewer compliance requirements, etc.