Take over a sole proprietorship & converting into a aompany

This query is : Resolved

Arun Thomas (Querist)
Follow

26 June 2014 Dear Sir/Madam,

Kindly go through the following cases and advice me ASAP.
Case1: Mr. Rajeev is own & running a sole proprietorship firm CAP TECHNOLOGIES since the year 2006. It is having a Panchayath License only. The proprietor is having a PAN
Case2: Mr. Kumar wish to purchase CAP TECHNOLOGIES @ Rs. 5000 on 26/06/2014; to use it's existence, goodwill & experience from the year 2006. He have some work order in his mind - which requires past 5 years balance sheet of CAP TECHNOLOGIES.
Case3: Mr. Kumar wish to transform this CAP TECHNOLOGIES into a Private Limited Company under ROC India w.e.f. July 2014; with his friend Rakesh. Share capital ratio among Kumar & Rakesh is 99:1 = 100%.

Kindly advice me on:
1)Take over of an existing sole proprietorship. If Kumar make the purchase, did the entity loss its existence & previous financial history. Whether Kumar needs to register it as a new one. Kumar prefers on the continuity of the proprietorship.
2) Tranformation of it into a company. In this case also, Kumar prefer the continuity of the Brand name.

Thanks and regards
Arun

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

05 July 2014 Kumar can continue the proprietorship CAP TECNOLOGIES. Panchayat licence has to be transferred to his name.

Brand name may be continued subject to availability while registering the company.

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