Prop. Firm


This query is : Resolved 

(Querist)
01 December 2009 Dear Experts,

Can a Private Limited Company become the sole owner or the proprietor of a business which is been already carried on as an partnership firm.

Regards,

01 December 2009 No, Pvt Ltd company cant be the sole proprietor because only an individual can be sole proprietor of a business. Sole Proprietory is a business owned by a single individual. For tax and legal liability purpose, the owner and the business are one and the same. The proprietorship is not taxed as separate entity. Whereas the Pvt Ltd company is treated and taxed as a separate entity and if it becomes the sole proprietor, then the very concept of owner and business being one and same will be failed.

rgds
CA Amitabh Gupta
Indore
ag_ind@rediffmail.com

09 August 2023


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