Owner of properitorship

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CA Gaurav Ramchandani (Querist)
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25 May 2013 CAN ANY PRIVATE LIMITED CO. OR HUF BE THE OWNER OF PROPERITORSHIP FIRM ????? IF YES THEN WHAT IS THE FURTHER PROCEDURE ????

Guest

Guest (Expert)

25 May 2013 I don't understand your question what exactly you want to ask,
Co. or Huf be the owner of Proprietorship firm?

CA Gaurav Ramchandani

CA Gaurav Ramchandani (Querist)
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25 May 2013 I MEAN TO SAY IS COMPANY OR HUF ALLOWED TO BE OWNER OF PROPRIETORSHIP FIRM OR NOT ????
IN MOST OF THE CASES WE SEE INDIVIDUAL PERSON IS THE OWNER OF PROPRIETORSHIP FIRM BUT CAN AN HUF BE THE OWNER OF PROPRIETORSHIP FIRM ????

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Sunil

Sunil (Expert)
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25 May 2013 HUF can be a proprietor of a proprietorship concern. The rubber stamp would read as For ABC Proprietorship Concern, XYZ Huf, Karta, Proprietor. Keep the space between the name of the concern and the name of the HUF for the signature of the Karta. Please take care that you only do organised business for the HUF with HUF funds that do not require your personal skills (eg. of organised business are trading, manufacturing in an organised manner). In short you can also be a service provider in an organised manner where funds belonging to the HUF are deployed as capital (car hire, equipment leasing etc. even running courier service as that is also an organised activity). Avoid activities like commission agents, brokerage etc. or consultancy or professions etc. that require more of your own personal skills.

CA Gaurav Ramchandani

CA Gaurav Ramchandani (Querist)
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01 June 2013 SIR CAN COMPANY BE A PROPRIETOR OF PROPRIETORSHIP CONCERN ?????

Sunil

Sunil (Expert)
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01 June 2013 Company can use a trade name and also open account in its own name and indicating to bank that it will receive cheques in that trade name and can account it as a separate business that is part of its business income. I have seen invoices as

TRADENAME
Prop ABC Pvt. Ltd.

Director
But that was quite sometime back and I would not know about change in rules.

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