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barkha0011
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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1066

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 & discretion of the Prop., at his/her own will. You also can consider registering it as Partnership firm with a Ltd 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 involve comparatively more procedures, filing of returns, maintenance of records/accounts & audit. Also require a role of a Co.Secretary either as a consultant or a full time incumbent to manage statutory requirement, share holding etc. My suggestion is, for the present, you are well advised if convert it to a Partnership firm with LLP status. In due course, considering requirement you may think of converting it to a Ltd.Co.
A candidate either, ACA/ACS, MBA(F) or BE/MBA-Fin.with LL.B., possessing in depth knowledge & experience in corporate affairs & business devt. will be an ideal choice.

From India, Bangalore
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1066

Continuing the above post, There is one option available to you if you wish to have the distinction of owning "A Company", without admitting any one as a partner or a shareholder. Still, you remain and rule it as a King. Read on 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 Propritorship firm, where it's only one owner, can become a Co. that's known as OPC-ONE PERSON COMPANY. You'll read the salient features, formation etc. provided in the attachment. Choice is yours.

From India, Bangalore
Attached Files (Download Requires Membership)
File Type: docx ONE PERSON CO.-Companies Act 2013.docx (16.6 KB, 25 views)

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