Get 3 Yrs of CCI Pro Membership at Greater Value. Subscribe Now!

How to change proprietor

Save Share

This query is : Resolved

Dharmesh Patel (Querist)

14 November 2013 I want to change proprietor in proprietorship. Can it possible directly by changing name of proprietor?
Can proprietor gift the whole business to other. In the my case, proprietor want to change his business in the name of his nephew.
What is legal procedure and where we have to inform after changing legal status?

Ravindra Srinivasa

Ravindra Srinivasa (Expert)

15 November 2013 a proprietor is a single person and that person can be changed only when he sell the business as a whole to another person. After the purchase, the buyer of the business will become new proprietor. In your case, proprietor shall sell his business to the name of his nephew and that nephew shall get registration of VAT, Service Tax, Central Excise as applicable before the sale and purchase happened.

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