Statuary audit

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sangeeta (Querist)

19 July 2012 please tell me that a company can be properiator of a proprietorship fierm if yes then whether consolidation is to be done,if yes how. Please clarify the legal position,Even in both case where it has same business or different business as to its properietorship firm.
thanks in advance

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

19 July 2012 Certainly not!!!
A company can be a partner in the firm but it can never be a proprietor. it will always be an individual

sangeeta

sangeeta (Querist)

06 August 2012 thanks sir, plz tell me the provision from where i can conclude the same as i have to
show the same to my senior.

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)

07 August 2012 The sole proprietorship is the simplest business form under which one can operate a business. The sole proprietorship is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. A sole proprietorship can operate under the name of its owner or it can do business under a fictitious name, such as Nancy's Nail Salon. The fictitious name is simply a trade name--it does not create a legal entity separate from the sole proprietor owner
A compnay is owned by various shareholders. How come it can run a proprietorship business???
How can a senior person ask such type of question???

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