Can we buy an existing sole proprietorship in india

Resolutions 4329 views 4 replies

chatung

owner

27 Points Joined June 2014

Can we buy an existing sole proprietorship in India to improve the credential/work experience of my current company?

My current sole proprietorship firm which is registered under "Construction business" and we mostly deal in tendering/bidding of govt. dept. like PWD,CPWD, RWD, etc for the work proposals.
The problem is we are unable to BID certain work/tender (i.e.... tender related to earth cutting and bridges) because of lacking in credentials of my firm.
So, is it possible to buy an existing sole proprietorship in India ? If, Yes How ? And if not, is there any other way to do so, or should i first change my sole proprietorship firm into Private limited company ?

Replies (4)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

you have both options available. either convert your proprietorship concern into a pvt. ltd. co. or any other co. will takeover your proprietorship business. contact a CA in your city and he will explain you the detailed procedure and provide his professional help in exercising any of the options.

chatung

owner

27 Points Joined June 2014

Originally posted by : Tribhuvan Aditya Singh
	you have both options available. either convert your proprietorship concern into a pvt. ltd. co. or any other co. will takeover your proprietorship business

So it means ONLY after changing my sole proprietorship into Pvt. Ltd ---- I can Acquire/buy an existing OLD proprietorship ?...

Please kindly provide some more insight .

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

no, if you want to acquire another proprietorship concern then you can directly buy it without converting your own proprietorship concern. actually i thought that you want your own proprietorship to be converted into a company for taking tenders and thats why i gave the above answer. ..... if you have a prop. business and wish to acquire another prop. business then you dont neeed to do anything special. just contact the owner of another business, agree on terms of takeover and carry out an agreement for purchase of business.. thats it...

Ritesh Raj

3 Points Joined August 2017

Hello Sir,

Is it possible for a Pvt. Ltd. company to take over/ completely aquire & merge in existing pvt ltd/purchase a Sole Propritorship company. If so, can someone please articulate me the procees. Is it possible to consolidate the financial statement after the complete purchase.And What will happen to the existing bank account, website and licence of existing sole proprietorship firm after being puchased.