Can a Pvt. Ltd. company buy any propriotership company

Hi,

Below is the senario.

I have a Pvt. Ltd. company regsitered in 2007. Not doing any business in it though, just maintaining the account and have paid income tax once.

I have been doing business under different properiotersip companiesas follows.

Company A - Myself as proprioter ( from 2005)
Company B - Myself as Proprioter (from 2008)
Company C - Friend as Proprioter (from 2008)
Company D - Mother as proprioter ( from 2009)

I have been paying my income tax as proprioter of COMPANY A from 2005-06.

Now I want to Work under one company only that is the Pvt. Ltd. company, Also I want the Pvt. Ltd. company to officially buy all the proprioter companies and in turn offer the respective proprioters of all companies some %% share in the Pvt. Ltd. company and make them directors. All Proprioter companies are doing business in IT and have a turnover of around 25-40Lac

My questions is that is it possible and if yes how easy or how complicated is it.

Also How much will be the expense to do it and how long it shall take.

Thanks

Replies (5)

First of all, it seems tough to bring all the proprietorships into one Pvt Ltd company, unless and until the objectives of all the businesses are same, i.e business is similer. You will need to modify the objectives of company for each proprietorship separately. Takeover clause is also inserted for every business in the MOA/AOA of the company. You can bring it into one umbrella, but it will be a little complicated process. Shares can be allotted accordingly to the proprietor. All the things depend on the objectives of Pvt Ltd and objectives of different proprietorship concerns. In my opinion, instead of going for broad opinions, you should consult to a CA personally, and proceed according to his/her consultancy because this contains lots of technical issues of ROC works as well as Income tax matters (Capital Gains).

The objective of the pvt. ltd. company is the same. Every company is an IT company. Thanks

Then you can go for buying of all the proprietorship concerns. But still I would suggest you to proceed under guidence of CA personally. And also take care of Capial Gain issues in this matter.

I see that you are based in Delhi, Which part of the city are you in and can I have your contact info.

I am practising at Preet Vihar (East Delhi). Please contact me first on email id at tarun2507 @ gmail.com , as I can not give my mobile numbers on this website. I will send you my contact info on your email id.

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