Conversion of a Proprietorship to Pvt Ltd Company


In a Pvt. Ltd. company, the liability of a shareholder is limited to the extent of capital invested by him/her and the company can be sued in its name, whereas a sole Proprietorship firm is under a single person.


  • Minimum number of shareholders: 2 

  • Minimum number of directors:  2

  • All directors are required to obtain Director Identification number 


  • No personal liability

  • Perpetual succession

  • Easy transfer of shares 

  • Creates brand value

  • Raises capital

  • Separate legal entity: acquire property on its name 

Documents required 

  • PAN card

  • Identity card

  • Passport size photograph 

  • Utility bill

  • Copy of rental agreement / Copy of property papers of registered office

  • NOC provided by Owner

Conversion process

Step 1: Apply conversion of the company to Private Limited Company 

Step 2: Submit all the mandatory documents which are required for registration 

Step 3: Obtain a Digital Signature Certificate and Director Identification Number.

Step 4: Apply for approval of the name of the company in the prescribed format.

Step 5: Draft MOA & AOA for the company and  then file for incorporation

Step 6: If all the conditions get fulfilled which are required for incorporation, then a registration certificate is issued to Private Limited Company.

This whole process may take 25 to 30 days but it also depends on various circumstances like approval and documents submitted by the applicant.