Sole proprietor concern taken over by private limited concern

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

one of my customer is running sole proprietor concern, due to availment of loan we created private limited concern and it is running parallely. Now the banker insisting private limited to take over the proprietorship concern. The proprietor concern having movable and immovable property.

What the procedures to be followed to avoid stamp duty on transfer of immovable property.

can anyone guide me. Thanks in advance.

[DR.MARIAPPAN GOVINDARAJAN]

In my view there is no legal compliance to the proprietorship. The proprietor may transfer the entire business to the partnership on consideration.

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

The transferee is not partnership concern it is a private limited concern.

[DR.MARIAPPAN GOVINDARAJAN]

In my view it can be done for company also.

AI Summary

Transfer of Business: sole proprietorship may be transferred to a private company by sale of the business, implications for stamp duty follow.
Transfer of business from a sole proprietorship to a private limited company may be effected by transferring the entire business and its assets for consideration; respondents indicated that mechanisms analogous to business transfer to a partnership can be applied to a company, but no detailed procedural steps or authoritative guidance on stamp duty avoidance was provided.