G. Sreedhar (Tax Practitioner) (49 Points)
13 December 2014ONCE A PROPRIETORY FIRM IS CONVERTED INTO PRIVATE LIMITED COMPANY, HOW THE ASSETS OF PROPRIETORY FIRM TRANSFERRED TO COMPANY WILL HAVE LEGALITY. MY QUESTION IS AS UNDER.
PROPRIETORY FIRM WILL HAVE LAND & BUILDINGS AND THEY WERE IN THE NAME OF THE PROPRIETOR. HOW WILL IT GET CHANGED INTO COMPANYS NAME. WHEN THERE IS NO STAMP DUTY HOW THE REGISTRAR WILL REGISTER THE LAND & BUILDINGS IN FAVOUR OF THE COMPANY.
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 16 December 2014
Proprietor and limited company are two different legal entities. Immovable property of proprietor cannot be transferred to limited company without execution of conveyance deed after payment of stamp duty. Registration of such deed is also mandatory under Section 17 of Registration Act.
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