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take over of proprietorship business by a new pvt ltd. co

renu dutt (c a) (231 Points)

22 May 2010

I hav a aproprietorship business, now I am in the process of incorporating a private limited co.Is there a special procedure to take over the existing properietorship business by the pvt. ltd. co. pls help

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5 Replies

CA LOVELY ARORA (C.A. B.Com (H) Graduate) (2151 Points)
Replied 22 May 2010

Dear Renu,

in what respect you want to know about.......... whether for income tax purpose or accounting purpose......... or general...........

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raspreet kaur (job) (55 Points)
Replied 24 May 2010

for your query kindly refer to the following link:-

/forum/conversion-of-sole-trading-into-limited-company-10771.asp

renu dutt (c a) (231 Points)
Replied 28 May 2010

Dear Raspreetji,

thanx a lot for your ans. but my question is about conversion of a sole propritorship into a pvt, ltd. co.

are there any forms that i shold file at the time of filing of Form 1, .

raspreet kaur (job) (55 Points)
Replied 01 June 2010

In Companies law there is no point of conversion of a proprietorship concern into a company. A company may purchase the entire business of a proprietorship concern.

You will have to comply with all the formalities which are required to form a company in any case.

So the best way is that you simpy form a company as per the requirement of Companies Act, 1956 & then takeover the business of Proprietorship concern through takeover agreement.