Legal aspect of property owned by sole proprietorship
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
17 August 2015
My client is carrying a proprietory concern where she is the proprietrix and purchased a property in the name of her business represented by its sole proprietrix "XXX" by avaling a home loan, now she wants to transfer her business to her father's name and her father is intereted to continue the business in the same name & style as proprietor by taking over all the assets & liabilities (includng bank OD).
Since the property document is in the name of her business represented by its sole proprietrix "XXX".
What is the legal aspects here, whether to take over the property & loan by her father
or without the property can he take over the business
Read more at: https://www.caclubindia.com/experts/ask_query.asp
Since the property document is in the name of her business represented by its sole proprietrix "XXX".
What is the legal aspects here, whether to take over the property & loan by her father
or without the property can he take over the business
Read more at: https://www.caclubindia.com/experts/ask_query.asp
17 August 2015
In the first place, please explain what do you mean by "document is in the name of her business"
Do you mean to say that Soniya, sole proprietress carries the business in the name of Rahul Enterprises and the agreement to sale is in the name of Rahul Enterprises????
This is an ab initio mistake. Sole Proprietary Business CAN NOT hold property in its name.
A COMPANY may hold the property but not the sole proprietary business.
Do you mean to say that Soniya, sole proprietress carries the business in the name of Rahul Enterprises and the agreement to sale is in the name of Rahul Enterprises????
This is an ab initio mistake. Sole Proprietary Business CAN NOT hold property in its name.
A COMPANY may hold the property but not the sole proprietary business.
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