Hello, We have a sole proprietorship and we want to hire a Business development manager to expand. Is it mandatory to convert it into PVT LTD? I want to know what all the requirements to hire one.
From India, Delhi
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From India, Delhi
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Hi Barkha,
There's no imperative need to convert a Proprietorship firm to a Pvt. Ltd Co. with a view to develop your business. Even in a Prop. firm, you can recruit persons to any post. Nevertheless, converting into a Pvt. Ltd Co. is the option and discretion of the Proprietor, at his or her own will. You can also consider registering it as a Partnership firm with a Limited Liability Partnership (LLP) firm, taking a few from your own family or friends as your partner(s). Incorporating the firm as a Pvt. Ltd Co. involves comparatively more procedures, filing of returns, maintenance of records/accounts, and audit. It also requires a role of a Company Secretary either as a consultant or a full-time incumbent to manage statutory requirements, shareholding, etc. My suggestion is, for the present, you are well advised if you convert it to a Partnership firm with LLP status. In due course, considering requirements, you may think of converting it to a Ltd. Co.
A candidate who is either ACA/ACS, MBA(F), or BE/MBA-Fin. with LL.B., possessing in-depth knowledge and experience in corporate affairs and business development, will be an ideal choice.
From India, Bangalore
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1273There's no imperative need to convert a Proprietorship firm to a Pvt. Ltd Co. with a view to develop your business. Even in a Prop. firm, you can recruit persons to any post. Nevertheless, converting into a Pvt. Ltd Co. is the option and discretion of the Proprietor, at his or her own will. You can also consider registering it as a Partnership firm with a Limited Liability Partnership (LLP) firm, taking a few from your own family or friends as your partner(s). Incorporating the firm as a Pvt. Ltd Co. involves comparatively more procedures, filing of returns, maintenance of records/accounts, and audit. It also requires a role of a Company Secretary either as a consultant or a full-time incumbent to manage statutory requirements, shareholding, etc. My suggestion is, for the present, you are well advised if you convert it to a Partnership firm with LLP status. In due course, considering requirements, you may think of converting it to a Ltd. Co.
A candidate who is either ACA/ACS, MBA(F), or BE/MBA-Fin. with LL.B., possessing in-depth knowledge and experience in corporate affairs and business development, will be an ideal choice.
From India, Bangalore
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Continuing the above post, there is one option available to you if you wish to have the distinction of owning "A Company", without admitting anyone as a partner or a shareholder, yet still remaining and ruling it as a King. Read on to learn how to go about it.
This is all about one more option. With the introduction of the overhauled Companies Act (1956) 2013, a new provision has been introduced that a Sole Proprietorship firm, where it's only one owner, can become a company known as OPC-ONE PERSON COMPANY. You can read about the salient features, formation, etc. provided in the attachment. The choice is yours.
From India, Bangalore
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This is all about one more option. With the introduction of the overhauled Companies Act (1956) 2013, a new provision has been introduced that a Sole Proprietorship firm, where it's only one owner, can become a company known as OPC-ONE PERSON COMPANY. You can read about the salient features, formation, etc. provided in the attachment. The choice is yours.
From India, Bangalore
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