Why convert a proprietorship to a company?

Limited liability, perpetual succession, the ability to raise external capital, and a clear separation between business and personal taxes.

Will there be capital gains on transfer?

A slump sale of the business as a going concern is taxable as long-term/short-term capital gains, but exemptions under section 47(xiv) may apply where conditions on shareholding and consideration are met.

Can my GST number be transferred?

GST registration is PAN-based and cannot be transferred. The Pvt Ltd obtains a fresh GSTIN and the proprietor's GSTIN is cancelled with a final return.

Conversion

Relevant for:For Solopreneurs For SMEs

Proprietorship to Private Limited Company Conversion

Convert your sole proprietorship into a Private Limited Company — incorporation, slump-sale or itemised asset transfer, tax-efficient structuring and post-conversion compliance setup.

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