Maha (owner) 09 September 2019
Not sure this is the right place to ask. We are a registered Retail business company in chennai. One another person also doing the same business for the last 50 years but its unregistered one person business with no big assets. The main reason we though of paying something to him and get this takeover ( not assets if any , just a legal paper takeover kind ) SO that we can say/advertise our company is 50 plus years old ( stating his business start year as ours ) . As his business is unregistered with no records , is there a proper way to close this and achieve our goal ?
Thanks in advance
Chirag (Professional) 14 September 2019
No, You Can't advertise as your business is 50 Years old, However if you would like to merge his business with you, Just assess his total assets and Liabilities ( Enter into an agreement with Board Process to Acquire only assets + Payment of Goodwill) and agree him to allot shares in consideration other than cash( Do valuation of shares by CA) .Also arrange EOGM to approve such resolution and acquire his business, File necessary forms with ROC,Now his business will be under your company and you can Put your company name and write (In brackets) Former name of His business ...Also note your MOA include such objects which are of The unregd. business you are acquiring and AOA should Authorize issue of shares ...Else amend MOA/AOA first...
Otherwise, You can enter into pvt agreement with such business and convince owner to convert his proprietorship into pvt Ltd company (Not Opc) ,Your company can become subscriber in that company and acquire shares into that pvt company and finally all shares making it wholly owned subsidiary...
disclaimer - Just education and personal views, Should not be act upon, always take professional advice .