Reason to register for company in case of conversion of Proprietary into pvt LTD

[Kishore Dintakurthi]

Sirs

A sole proprietorship is being converted into company by takeover. We are applying gst registration for company. In the field of Reason to register, actually three options are there nearer to our situation.

1. Change in constitution
2. Amalgamation / merger
3. Transfer / succession of business

Which one to select ??

Whats your opinion sir? kindly clarify

[KASTURI SETHI]

'Change in constitution' is the best option. However, facts and circumstances are known to you.

[Ganeshan Kalyani]

I agree with the views of Sri Kasturi Sir. "Change in Constitution" can be selected.

AI Summary

Change in constitution selected as the GST registration reason when a proprietorship converts to a private limited company by takeover. For GST registration following a takeover that converts a sole proprietorship into a private limited company, the appropriate reason to select is Change in constitution; this option is preferred by practitioners over alternatives like Amalgamation/Merger or Transfer/Succession of Business, subject to the specific facts and circumstances.