Kindly go through the following cases and advice me ASAP. Case1: Mr. Rajeev is own & running a sole proprietorship firm CAP TECHNOLOGIES since the year 2006. It is having a Panchayath License only. The proprietor is having a PAN Case2: Mr. Kumar wish to purchase CAP TECHNOLOGIES @ Rs. 5000 on 26/06/2014; to use it's existence, goodwill & experience from the year 2006. He have some work order in his mind - which requires past 5 years balance sheet of CAP TECHNOLOGIES. Case3: Mr. Kumar wish to transform this CAP TECHNOLOGIES into a Private Limited Company under ROC India w.e.f. July 2014; with his friend Rakesh. Share capital ratio among Kumar & Rakesh is 99:1 = 100%.
Kindly advice me on: 1)Take over of an existing sole proprietorship. If Kumar make the purchase, did the entity loss its existence & previous financial history. Whether Kumar needs to register it as a new one. Kumar prefers on the continuity of the proprietorship. 2) Tranformation of it into a company. In this case also, Kumar prefer the continuity of the Brand name.
CAclubindia
