How to Convert Proprietorship to Private Limited Company in Bangalore Without Losing Client Contracts, Bank Relationships or GST Input Tax Credit
Introduction: The Structure That Worked at ₹50 Lakh and Failed at ₹5 Crore Most Bangalore businesses do not choose their legal structure; they inherit it. A consultant registers a proprietorship because it takes a day. A trader opens a current account in his own name because the bank asks for little else. For years this works, because a small business needs few things from its structure. The trouble starts when the business needs something from outside. A bank asks for audited accounts and a separate balance sheet. An enterprise client wants a registered vendor with a corporate identity. An investor asks where the shares are. At that point the owner learns that a proprietorship cannot issue equity or hold assets in a name other than the owner’s, and that every contract and liability is personal. Many owners also find that the structure they chose for convenience has become the ceiling on their growth. The practical answer is almost always the same, and it is less frightening than...