Growing businesses often reach a point where their current legal or operational structure no longer supports their ambitions. This could be a sole proprietorship looking to formalize, a partnership seeking limited liability or a private company aspiring for public listing. The process of converting your business structure is complex, laden with legal and financial hurdles. This is where Change Over Consulting becomes invaluable.
Praman Advisors, a leading legal-tech firm, specializes in providing comprehensive and seamless solutions for business changeovers. With their expert guidance, businesses can navigate these transformations smoothly, ensuring compliance and setting the stage for future growth.
1. Overview of Change Over Consulting:
Change Over Consulting refers to the professional guidance and support provided to businesses undergoing a fundamental change in their legal structure. This can include:-
- Proprietorship to Private Limited Company: A popular choice for small businesses seeking limited liability, enhanced credibility and better access to funding.
- LLP to Private Limited Company: Often done to attract external investment and improve governance.
- Partnership to Private Limited Company: This conversion provides perpetual succession and protects personal assets.
- Proprietorship to LLP: Ideal for businesses seeking a more structured partnership with limited liability.
Praman Advisors leverages its AI-driven platform and a team of seasoned professionals to simplify this intricate process. We handle everything from document preparation to filing with the Ministry of Corporate Affairs (MCA), allowing you to focus on your core business.
2. Benefits of a Business Change Over:
Converting your business structure offers significant advantages that are crucial for long-term success.
- Limited Liability: A private limited company protects the personal assets of directors and shareholders from business debts and liabilities. Your financial risk is limited to your capital contribution.
- Perpetual Succession: Unlike a partnership, a company's existence is not affected by the death, retirement or insolvency of its members. The business continues to exist, ensuring stability and continuity.
- Enhanced Credibility: A private limited company is viewed as a more credible and stable entity by customers, suppliers and financial institutions. This makes it easier to secure loans, attract partners and win new business.
- Access to Funding: Investors and venture capitalists prefer to invest in a private limited company due to its transparent structure and clear ownership.
- Simplified Ownership Transfer: Shares in a company can be easily transferred, allowing for a smooth change of ownership or the addition of new investors.
- Better Governance: A company structure provides a clear framework for decision-making, with defined roles and responsibilities for directors and shareholders, leading to improved management and risk control.
3. Documents Required:
To initiate a business changeover, you will need a set of documents for the existing business and its proposed directors or partners. While the exact requirements may vary based on the type of change, here is a general list.
- From the Existing Business:
- Certified copy of the latest partnership deed, if applicable.
- Certified copy of the latest financial statements and Income Tax Return of the business.
- No Objection Certificate (NOC) from all secured creditors.
- Consent of all partners/proprietors for the conversion.
- From Proposed Directors/Shareholders:
- PAN Card and Aadhar Card.
- Proof of identity and address (Voter ID, Passport, Driving License, Bank Statement or Utility Bill).
- Latest passport-sized photographs.
- Digital Signature Certificates (DSC) and Director Identification Numbers (DIN) for all proposed directors.
- For the New Registered Office:
- Proof of Address (Electricity Bill, Water Bill etc. not older than 02 months).
- Rent Agreement (if applicable) and NOC from the landlord.
- Sale Deed/Property documents (if owned).
Praman Advisors provides a comprehensive checklist and a user-friendly platform to help you upload and verify all necessary documents efficiently.
4. The Process to Apply:
The process of converting your business with Praman Advisors is streamlined and hassle-free.
- Initial Consultation: The journey begins with a free consultation with Praman Advisors' experts.We will assess your business needs and recommend the most suitable changeover.
- Document Submission & Verification: You will be provided with a secure, online portal to upload all required documents. The team will meticulously verify them and address any discrepancies.
- Name Approval & Advertisement: Praman Advisors handles the application for the new company name. We also manage the mandatory newspaper advertisements to invite any objections.
- Application Filing: The team prepares and files all the necessary forms (like URC-1, SPICe+ Part A & B) with the Registrar of Companies (ROC).
- Follow-up & Compliance: We diligently follow up with the ROC to ensure a quick approval, promptly addressing any queries from the authorities.
- Issuance of Certificate of Incorporation: Once the documents are successfully verified, the ROC issues the Certificate of Incorporation, officially marking the conversion.
5. Fees and Timelines:
The cost and timeline for a business changeover with Praman Advisors are transparent and depend on the type of conversion and specific requirements.
- Fees: Fees include both government charges and the professional service fees of Praman Advisors for our expert consultation, documentation and filing. We provide a clear, upfront breakdown with no hidden costs. For a precise quote, it is best to contact us directly.
Manju Laur: 📞 +97119 94042
- Timelines: The entire conversion process typically takes 07 to 15 working days, provided all documents are in order and there are no government-related delays. Their efficient process and expert handling are designed to minimize any delays.
