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  • Category: Indian Law

    Transfer of business of sole proprietorship to his son


    Have a query about whether sole proprietorship can be transferred to the son? Searching for the detailed procedure here? Find suggestions from experts for your queries on the page.

    What is the procedure of transferring a sole proprietorship business to his son? Since it is GST now they say its not possible to transfer.
    What are the advantages and disadvantage which will affect to a sole proprietor and his son?
  • #149761
    The proprietorship can be changed from all deeds (Bank, rent agreements) by executing a settlement deed.
    In the case of the company make a resignation letter from the company and your father can transfer the properity to the by filing a necessary application for transferring the share before Registrar of the company with help of Charted accountant or company secretary.

    drrao
    always confident

  • #149782
    There are some legal ways to accomplish the transfer of proprietorship from father to the son. The present owner of the business has to execute title transfers or quitclaim deeds in favor of the new owner who is the son in this case. All the assets of the business are to be listed out in the deed to avoid any confusions at a later stage. In case there are certain items which are separate entity, then those can be transferred by signing another deed in favour of the son.

    In case of a listed company the shareholding is to be transferred through share registrar office and once the son possesses required shares of the company he claims the ownership.

    Another common legal way is that the father converts his business from proprietorship mode to partnership mode and after sometime resigns from the company and paves way for his son.

    Knowledge is power.

  • #149837
    It is difficult to sell a sole proprietorship and you can sell only the business assets. There is no legal difference between owner and proprietorship. The company does not own assets or sign contracts. For transferring the business ownership, you must transfer the ownership of assets. If Proprietorship has values and assets, you must consult with an attorney for preparing the sales contract. If we are transferring ownership to a family member without actual sale, a sales contract is good and the new owner needs an official document which shows the ownership.
    "Earning knowledge is by sharing it with ISC and we will rectify our mistakes."


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