When it come to a have a company in Indian the concept of business is common. Pvt Ltd Company is incorporated under the Companies Act of 2013, and governed by the Ministry of Corporate Affairs (MCA).
A Private limited company is a type of company held by a small business entity having a defined objective with small group of member who are the shareholders. The ownership is defined by the shares held by the owner in the company.
Benefits of One Person Company:
No minimum capital is required to form a Private Limited Company therefore there is no pressure of fund requirements.
Limited risk to personal assets in Private Limited Company.
It is easy to get funding in a private limited company by transferring of shares.
It is a Separate Legal Entity.
Q1. Can a sole proprietorship use the word "company" in the trade name?
No. NDCC, Section 47-25-03 provides:
"A trade name may not contain the word "company", "corporation", "incorporated", "limited", "limited liability company", "limited partnership", "limited liability partnership", "limited liability limited partnership" or any abbreviation of any of these words unless the owner of the trade name is a corporation, limited liability company, limited partnership, limited liability partnership, or limited liability limited partnership as indicated by the words used in the name."
Q2. Can you convert your sole proprietorship to a different business structure, e.g., a corporation, and continue to use the name you developed as a sole proprietorship?
You, as the registrant of the trade name, will have to either:
• Grant consent to use of name to the newly forming entity,
• Assign the trade name to the newly forming entity; or
• Cancel the trade name registration at the time the new entity is filed with the Secretary of State.
Q3. Can you convert your sole proprietorship to a different business structure, e.g., a corporation, and continue to use any licenses or permits that you held as a sole proprietor?
A different business structure is a separate legal entity from the sole proprietorship. Licenses are not usually transferable from one business structure to another. Consult legal counsel or the agency that issued the license.