16 August 2015
I am a director in a pvt ltd. formed in 1980, with other directors. 3 years back I stated a proprietor co .
in these 3 years the pvt ltd. shared ate now all family held and directors are now also internal. I want keep both the companies working if possible, but want to show all sales of the proprietor co. in the pvt Ltd company.
can the proprietor co. be subsidiary of the pvt ltd somehow?
if no choice, then I want the pvt ltd to take over the proprietor co and all sales transfers to pvt Ltd.
this way this year the sales of the pvt Ltd will increase drastically making the pvt Ltd books look very good
17 August 2015
Taking over of Proprietorship business by a Private Ltd co is possible, but you need to consider taxation effect in this transactions. you might have capital gain tax while taking over.
I think this is the only way by which you can merge business of Proprietorship into a Company.
Please consult a CA/Expert in this field who can explain this to you in detail.
CAclubindia
