02 November 2020
Dear Experts, I want to know the procedure of taking over of a unit in a propreitory business by a newly formed Pvt Ltd company. The propreitor of that business is a major share holder in the newly formed Pvt Ltd company. 1. We need to understand if any Sale/Assignment deed is to be made between Propreitory and Pvt Ltd? 2. Any Capital Gains applicable on the movement of stock if they are brough at booked values ? 3. Propreitory concern is a MSME unit and taken credit facilities in a nationalized bank, how to transfer the facilities from the bank (propreitory current account) to bank (Pvt LTD current account)? Appreciate your expert advise/suggestions.
05 November 2020
You have draft business transfer agreement and valuation need to be done and slump sale of business to private limited and you should completely shut down your Proprietory concern.
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