Can a private limited company open a proprietorship firm

This query is : Resolved

mukul (Querist)
Follow

04 September 2011 If there is a private limited company which is currently not working.can it open one or multiple proprietorship firms under it and those firms will work on the other objects of the companies memorandum and not the main objects.

Hari Beldona

Hari Beldona (Expert)
Follow

04 September 2011 What a person can do company(incorporated under Companies Act) can do except few things for example company can not marry, since it is an artificial person created by law, it can start a new business under its name but it should be with in the object clause otherwise object clause is to be altered.( proprietorship is concern owned by natural person)

CA Suresh Choudhary

CA Suresh Choudhary (Expert)
Follow

04 September 2011 Agree with expert.

Message likes : 1 times

mukul

mukul (Querist)
Follow

15 September 2011 I have a company in the name of nitin motors pvt ltd. which is currently not working and its main objects states that it can do any work related to motors garage etc.
Now i wish to open 2 units under it in the name of T2 and R2.
T2 will be totally export oriented unit and R2 would be trading in fabrics in domestic market.
The other objects of nitin motors allows me to carry on business of these natures...
Are we allowed to open such units under nitin motors pvt ltd.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now