whether one branch office of a Pvt. Ltd. Co. can be separated from the Co. and can be converted into a separate proprietorship concern or a Pvt. ltd. co.
if yes what formalities are to be completed.
regards,
poonam
poonam verma (Company Secretary) (191 Points)
02 July 2008whether one branch office of a Pvt. Ltd. Co. can be separated from the Co. and can be converted into a separate proprietorship concern or a Pvt. ltd. co.
if yes what formalities are to be completed.
regards,
poonam
Praveen Kr. Tiwary
(Practicing Company Secretary)
(54 Points)
Replied 03 July 2008
Dear Poonam,
If the branch office can be identified as an undertaking of the company, i.e. its assets, liabilities and business can be seperately identified out of the total business of the Company then you can demerge that Branch office into a new Company by following the procedure under section 39-394 of the Companies Act.
Regards
CS Praveen Tiwary
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