21 September 2011
Can anyone please guide me the way to convert sole proprietorship concern into Company. the way in which new company is formed and then it acquires the firm later....does it attract any Capital Gain....in my opinion it is exempted under section 47 of the Income Tax Act 1961...but one condition it imposes is that the proprietor should be the shareholder with minimum 50% stake for minimum 5 years.... so can anyone tell me what is the way to get rid of this stakeholding of 50% and that also for 5 years....is there any other way out...can the stakeholder transfer the shares to other shareholder of the Company..... please help...
21 September 2011
Better you start a new company and do not sell the whole business to gather but make the process in piecemeal and get rid of the same.
22 September 2011
Vishrut ji how to do this practically but....... i mean in a company we can acquire the shares gradually but how can this be possible for a proprietor firm....please justify
in case of sole proprietorship concern acquired by company what about liabilities and statutory non compliances that belongs to proprietorship concern. Do they fall upon Company after takeover or can be settled by proprietor only???? is it legal to put all our terms of conditions for what assets or liabilities we want to acquire and what not as clauses of MOU. can anyone guide me the practical aspect of this????/
CAclubindia
