Proprietorship firm - a shareholder

[DEBABRATA ROY]

Whether Proprietorship firm ,represented by an individual as proprietor ,can be shareholder of a pvt limited company in India?is there any restriction of becoming a shareholder as capacity as proprietorship firm in stead of individal himself for whom no restriction as any individual can be shareholder

AI Summary

Can a Proprietorship Firm Be a Shareholder in a Private Limited Company? Exploring the Companies Act. A discussion on whether a proprietorship firm, represented by an individual proprietor, can be a shareholder in a private limited company in India. One participant argues that a proprietorship firm lacks independent identity and is merely a business name for an individual, suggesting that the individual can hold shares in the firm's name. Another participant concurs, stating there is no statutory restriction under the Companies Act preventing an individual from becoming a shareholder in the name of a proprietorship firm. Both emphasize reviewing detailed company provisions for clarity.