Welcome to Avinext Legal Services

Proprietorship to Private Limited Company Conversion

  • Affordable Price
  • Digital Signature & DIN for Directors
  • Name Search Approval
  • Company PAN Card
  • MOA/AOA
  • Fast & Online Process
  • 100% Customer Satisfaction
  • Ideal for Growing Businesses

Get a Free Consultation

Fill the form below — Our expert will Call You

Proprietorship to Private Limited Company Conversion Guide & Procedure

📋

Share Proprietorship Details

Share your proprietorship business details including owner information, business name, address, PAN, Aadhaar and current registrations.

📝

Company Name Approval

We help you select a suitable company name and apply for name approval with the Ministry of Corporate Affairs (MCA).

📑

Document Preparation & Filing

Our experts draft MOA, AOA and conversion documents and file incorporation forms on the MCA portal.

🏛️

Incorporation & Compliance

After approval, your Private Limited Company is incorporated and we assist with PAN, TAN and statutory registrations.

🚀

Business Continuity & Growth

Transfer assets, bank accounts and operations smoothly to your new Private Limited Company for better credibility and growth.

Easy Company Conversion
Convert Proprietorship to Pvt Ltd

Upgrade your proprietorship into a Private Limited Company to enjoy limited liability, better funding options and higher business credibility. Start your conversion today.

Proprietorship to Private Limited Company 2026: Complete Process Step By Step

Proprietorship to Private Limited Company – Overview (2026)

Converting a proprietorship into a Private Limited Company is a strategic move for business owners looking to scale operations, raise funding and protect personal assets. A Private Limited Company offers limited liability, separate legal identity and higher credibility in the market.

In 2026, proprietorship to private limited company conversion is carried out completely online through the Ministry of Corporate Affairs (MCA) portal. After conversion, the business continues under a corporate structure with improved compliance and governance.

Important: A proprietorship does not have a separate legal identity, whereas a Private Limited Company is treated as a distinct legal entity under the Companies Act.

Benefits of Converting Proprietorship to Private Limited Company

  • Limited Liability Protection: Personal assets of the owner are protected from business losses.
  • Separate Legal Identity: The company exists independently of its promoters or directors.
  • Better Business Credibility: Enhances trust among customers, banks, vendors and investors.
  • Easy Fundraising: Helps in raising capital from investors, VCs and financial institutions.
  • Ownership Transfer: Shares can be transferred easily without affecting business continuity.
  • Long-Term Growth: Ideal structure for scaling operations nationally and internationally.

Eligibility for Proprietorship to Pvt Ltd Conversion

Any existing proprietorship business can be converted into a Private Limited Company provided certain basic conditions are fulfilled.

Criteria Requirement
Number of Directors Minimum 2 directors are mandatory.
Shareholders At least 2 shareholders (same person can be director & shareholder).
Capital Requirement No minimum paid-up capital required as per current rules.
Business Continuity Existing proprietorship business must be operational.

Key Requirements for Conversion

To convert a proprietorship into a Private Limited Company, the following requirements must be met:

  • At least two directors with valid DIN and DSC.
  • Proposed company name approval from MCA.
  • Registered office address proof.
  • Transfer of proprietorship assets and liabilities to the company.
  • Compliance with Companies Act, 2013.
Note: The existing business name can be retained subject to name availability and MCA approval.

Documents Required for Conversion

  • Proprietor KYC: PAN card, Aadhaar card, passport-size photo.
  • Business Proof: GST certificate, shop act license or bank statement.
  • Registered Office Proof: Electricity bill, rent agreement or ownership proof.
  • Director Documents: PAN, Aadhaar and address proof of all directors.
  • Digital Signature (DSC): For directors and authorised signatories.
  • NOC: From the proprietor for asset and business transfer.

Conversion Process – Step by Step (2026)

  1. Director & DSC Setup: Obtain DSC and DIN for proposed directors.
  2. Name Approval: Apply for company name approval with MCA.
  3. Document Drafting: Prepare MOA, AOA and conversion-related documents.
  4. Filing Incorporation Forms: Submit SPICe+ and linked forms online.
  5. Certificate of Incorporation: MCA issues incorporation certificate.
  6. Transfer of Business: Assets, liabilities and bank accounts moved to company.
Timeline: The complete conversion process usually takes 7–12 working days, subject to document accuracy and MCA approval.

Government Fees & Professional Charges

The total cost of converting a proprietorship to a Private Limited Company depends on government fees and professional charges.

Particular Details
Government Fees Depends on authorised capital and state-wise stamp duty.
DSC & DIN Charges Applicable per director.
Professional Fees Varies based on documentation and compliance support.

*For an exact cost and customised consultation, please contact our team.

Why Choose Us

From registration to annual compliance, we simplify every step with expert guidance, transparent pricing and on-time delivery tailored to your organisation.

🏢

Pan-India Service

We assist NGOs, startups and companies across India with fully online documentation and support – no need to visit any office.

👨‍💼

Experienced CA / CS Team

Your work is handled by qualified professionals who understand regulations, funding requirements and ground-level challenges.

Fast & Transparent Process

Clear timelines, document checklists and regular updates – so you always know the exact status of your application.

🤝

Long-Term Compliance Support

Beyond registration, we help with 12A, 80G, FCRA, GST and annual filings, keeping your organisation compliant year after year.

Proprietorship to Private Limited Company – FAQs

Frequently asked questions about converting a proprietorship business into a Private Limited Company.

No, conversion is not mandatory. However, if you want limited liability, better credibility, easier funding and long-term business growth, converting into a Private Limited Company is highly recommended.
The conversion process usually takes 7–12 working days, subject to timely document submission and approval from the Ministry of Corporate Affairs (MCA).
Yes, in most cases the existing proprietorship business name can be retained, provided it is available and approved by the MCA during company name reservation.
All assets, liabilities, contracts and bank accounts of the proprietorship can be transferred to the Private Limited Company through proper documentation and agreements.
A minimum of two directors is mandatory to incorporate a Private Limited Company. The same person can also be a shareholder.
No, as per current rules, there is no minimum paid-up capital requirement to register or convert into a Private Limited Company.
GST and other registrations usually need to be updated or migrated in the name of the Private Limited Company after incorporation to ensure compliance.
Scroll to Top