Conversion of proprietorship to company

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Jatin Biswakarma (Querist)

07 August 2019 Hello everyone, I'm aware of the fact that a Sole-proprietorship can be converted into a private limited company. But if anyone guide me in the following that will be really a great help. Can three different Sole-proprietorship firms owned by single individual be converted into one private limited company? If yes, then is it okay for the proprietor to hold only 50% or more voting rights in the private limited company to avoid capital gain tax while transferring all the three businesses? And finally, if any of you can provide the draft agreement in word format for such conversion under companies act 2013. Thank you.

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

07 August 2019 Yes three different Sole-proprietorship firms owned by single individual be converted into one private limited company. It is okay for the proprietor to hold only 50% or more voting rights in the private limited company to avoid capital gain tax while transferring all the three businesses.
Make agreement from the link.
https://punjlloydgroup.com/investors/sites/default/files/pdf/Punj%20Draft%20BTA.pdf

Message likes : 1 times

Jatin Biswakarma

Jatin Biswakarma (Querist)

08 August 2019 Thank so much sir. Grateful for your reply.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

08 August 2019 welcome.................................

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