Conversion of sole proprietor to private limited
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 November 2011
Is there any procedure to convert sole proprietor to Private limited company.
09 November 2011
i think there is no procedure for conversion of sole proprietor to private limited company in today's senarion...but you can convert sole proprietor to public limited company..
after incorporation of private limited company...private company can aquire the business of sole proprietor after condition satisfied of companies act 1956 and income tax act 1961
after incorporation of private limited company...private company can aquire the business of sole proprietor after condition satisfied of companies act 1956 and income tax act 1961
09 November 2011
A Sole Proprietorship firm can be converted into a Private Ltd. Company by way of a takeover.
For this what all you have to do is to execute a MOU between the proprietorship fim & the Company in which the value of firm shall be taken as consideration for takeover. If the consideration for takeover is to be discharged by way of allotment of shares, then F-2 or F-3 (depending upon the circumstances) shall be filed with the ROC in which copy of MOU shall be attached.
In case of takeover, no Capital Gain Tax is attracted.
For this what all you have to do is to execute a MOU between the proprietorship fim & the Company in which the value of firm shall be taken as consideration for takeover. If the consideration for takeover is to be discharged by way of allotment of shares, then F-2 or F-3 (depending upon the circumstances) shall be filed with the ROC in which copy of MOU shall be attached.
In case of takeover, no Capital Gain Tax is attracted.
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