How to ascertain whether the assets of the company has any encumbrance
How to ascertain whether the assets of the company has any encumbrance over its movable and immovable assets including immovable property?
The company is the sole owner of its property, since it is a separate legal entity.
Dear, Harshit - A company is a legal person, though artificial in nature, separate from its members whereas a business does not have a separate legal identity from its members. In the case of a business therefore, there is no separate existence distinct from its members. Therefore, it is a separate legal entity. A company owns a sole proprietorship .A sole proprietorship is a business owned by a single individual. The individual who owns the business is called Proprietor and hence the name Proprietorship Concern. In the eyes of law, the Proprietor and the proprietorship business is a single entity and they do not differentiate between both of them. This means that all the assets, liabilities, profit, loss etc. of the business are property of the proprietor i.e. the company and they are also taxed at individual rates instead of business rates. This is also the reason why proprietorship do not have a separate PAN card for them and the PAN card of the Proprietor is used for any tax related purposes. Rutumbhara www.lawkonect.com 09555 507 507