TRANSFER OR PROPRIETARY BUSINESS

[DR.MARIAPPAN GOVINDARAJAN]

One of my lady client is running a business as proprietorship. Now she wants to transfer the entire business to her daughter-in-law. How it can be transferred? Whether gift deed serve this purpose?

[Sadanand Bulbule]

Respected Sir

One of the best options to transfer the business as proprietorship to a family member, in your case daughter-in-law, is by gifting to her with the valuation of assets, stock in trade etc., under intimation to all the concerned statutory authorities. Its my personal view Sir.

[KASTURI SETHI]

Sh.Sadanand Bulbule Ji,

Sir,  I want more information on the issue with legal force. Will  you oblige  me ?  Thanks a lot. 

AI Summary

Transfer of proprietorship by gift: use a gift deed with asset valuation and statutory intimation.
Transfer of a sole proprietorship can be effected by conveying the business assets, stock-in-trade and ancillary rights to the transferee through a documented instrument such as a gift deed; valuation of assets and stock-in-trade is integral and the transfer should be accompanied by intimation to and updating of all relevant statutory and regulatory records.