Sole proprietorship of private ltd co.

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Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2013 Practically why people create the sole proprietor of Pvt Ltd co. ( Say Parent co. of Pvt Ltd. ) Ex. M/s XYZ Traders sole Prop. M/s XYZ Pvt Ltd, & under which section of company act this is possible ..... & what is benefit from this ???

bhupender soni

bhupender soni (Expert)

05 January 2013 HUF, Proprietor, business comes under the category of non-corporate business. And co-operative, company is fall under the corporate business.
Non-corporate business need not required registration under the company act -1956 and not required much compliance as compare to corporate business
Sole proprietorship and pvt ltd company, both are different in laws. Sole proprietorship is a business which is headed by one single persona while pvt ltd company is a company which having minimum two member and not less than 1 lakh subscribed share capital
Conversion of company pvt ltd to limited or LLP to pvt ltd is came into u/s 390-396A (reconstruction, compromises etc)
NO buddy is create sole proprietor of pvt ltd company under any act while create subsidiary of pvt ltd company
ok

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