Conversion from Proprietor to Pvt. Ltd. Company

[Kaustubh Karandikar]

XYZ is a proprietory concern. The said concern they want to convert it to Private Limited firm. The present proprietor will remain as one of the directors and few more directors might get added in the new private limited firm. 1) What are the formalities to be observed by XYZ for complying with the GST provisions while carrying out the above conversion?

AI Summary

XYZ Proprietorship Plans Conversion to Private Limited Company; Key Focus on GST Compliance Under CGST Rule 27, 41 & Section 18(3). XYZ, a proprietorship, seeks to convert into a Private Limited Company. The current proprietor will become a director, with potential additional directors. The main concern is compliance with GST provisions during this conversion. It is advised that XYZ should refer to Rule 27 and 41 of the CGST Rules and Section 18(3) of the CGST Act. A new PAN is required for the Private Limited Company, necessitating a fresh GST registration. Consequently, the GST registration of the existing proprietorship must be canceled.