15 April 2011
plz tell me how to takeover the business of sole propeitorship in following situation
we have a business as sole propeitorship the owner of which is mr. A and he has formed a pvt company with his wife to do the same business now what procedure should we follow to acquire the business of sole propeitorship which would attract less formalities and tax
15 April 2011
This can be done by putting "Taking over the prioprietory concern M/s............" as one of the main objects clause of memorandum of association, if the company is under the process of incorpoation.
If already incorporated, you can amend MOA to include the above object by way of passing a Special Resolution in General Meeting and filing Form 23 with ROC with amended MOA. On ROC's approval the proprietorship concern will be taken over by the company.
CAclubindia
