Hey Buddies,
Following my previous post titled "ROC Filing for New Company" few hours back, would like to know whether:
1) A Private Limited Company can be converted as Sole Proprietorship Concern.
2) If So, what is the procedure ?
The Private Limited company is a detective services company where we have not received any business till now and other expenditures such as ROC Filing, Auditing etc..., cost us so much.
So, we have an idea to have it as Sole Propreitorship.
There is no provision in the Act for conversion of a company into proprietorship concern. You can enter into an agreement for transfer of business of the company to the proprietor and then take action for striking off name of the company from the register of companies.
Sir,
We are looking for a similar option for our NBFC Investment Private Company. After surrendering Licence to the RBI, can the Company enter into an agreement with the Managing Director (Promoter-Shareholder of a closely-held private company) to pursue the Investments in shares and securities business - by transfer of funds from the Company with the terms as sharing of profits and losses equally. (Then the transfer of funds will not become a loan as per the RBI guidelines). Then can we file Form STK-2, so that the funds would continue to be used in the same trade.
I request you to kindly let me know your response.
(Rajagopalan Ramesh) (Chennai)
Chirag P Shah & Co. Chartered Accountant
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