What if a director of a company starts a proprietor firm simultaneously?

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Mayur Dixit (Querist)
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02 May 2023 Hi Experts,

Can a company director holding 49% shares of a company be a proprietor of another company distinctly?

CA R SEETHARAMAN (Expert)
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02 May 2023 Yes, he can be no problem.

Mayur Dixit (Querist)
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02 May 2023 Hi Sir,
However, I guess the transaction in between them cannot be shown as debtor-creditor relationship? Any advise

CA R SEETHARAMAN (Expert)
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02 May 2023 Yes, it can be shown as debtor creditor relationship. But should be disclosed as related party transactions.

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