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Proprietorship concern to company ?

zeal sheth (CA) (127 Points)

03 July 2009

What is the procedure to convert Proprietorship concern to company ?

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6 Replies

Ajay Mishra (Company Secretary) (74337 Points)
Replied 03 July 2009

Dear Zeal,

I think this attachment will help you.

Regards

Attached File : 51 chapter ix co .doc downloaded: 428 times

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sudhir gautam (CA Final) (145 Points)
Replied 04 July 2009

Dear Sir

What you have attached did you know. There is no set procedure to convert the proprietorship into company.

First of all incorporate company and decide the share holding and atleast two person should be as directors then company can take over the business of Prop. as assets and liability and pass board resolution for the same

LAXMIKANT JAIPURKAR (Practicing Company Secretary/Tax Consultant) (403 Points)
Replied 08 July 2009

The procedure is as below :

1. To search another person other than propritor to act as subscriber and director of the company. So that the total subscribers and directors will be atleast two.

2. Prepare the AoA and MoA. MoA should have the main object as "To acquire the proprietory business run by Mr....... who is subscriber to memorandum immediately after the incorporation of the Company".

3. Form the company by filing MoA, AoA, Form-1, form-32, form-18 alongwith requisite stamp duty and RoC filing fees.

4. After formation, in the first meeting, acquire the proprietory business by passing the Board Resolution. Thereafter, the all the assets and liabilities of the proprietorship will be transferred to private company.

5. Change the letter heads, visiting cards, bill books, delivery challans and other stationery. Change the Boards/hoarding of the premises of the company.

6. Inform the bankers/financial institutions, suppliers, customers, government authorities which the proprietorship concern is registered/licence obtained, etc.

san1965 (Consultancy) (28 Points)
Replied 16 August 2009

Hello,

Apropos to Mr. Jaipurkar's explanation of the transfer procedure, I would like to refer to a post from another thread: /forum/message_display.asp?group_id=13077. [Thread 13077 is one year old, hence posting my query to this thread.]

It is mentioned there that, as proprietor, when I transfer my assets to the PLC, it is considered as "no transfer u/s 47 (xiv)". Would appreciate what this means.

Thanks