Transfer the ownership of a sole proprietorship business
This query is : Resolved
Nitu pandey
(Querist)
17 September 2016
One of my friends wants to transfer the ownership of a sole proprietorship business to his friend. The business is Shop & establishment registered and there is a bank account associated with the business. What is the procedure of transferring such an entity? Is it possible to change the name of the business during transfer of ownership? How to account for the existing inventory and assets in the business?
Amol S Joglekar
(Expert)
17 September 2016
if you are sure of having a new name....then better first apply for the liscence under shops and establishment act, under the new name( and new proprietor)
once the new entity is formed, let it purchase the assets of the old proprietary business of friend, at the agreed price. The capital gain is to be worked out in the hands of seller.
once the new entity is formed, let it purchase the assets of the old proprietary business of friend, at the agreed price. The capital gain is to be worked out in the hands of seller.
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