Lawfarm Team
in Property Law Family Law Contracts Law Civil Law Insurance Law
Asked May 19, 2016

Want to transfer my business to my grandson.

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A is the owner of a sole-proprietorship business. I would like execute a will to transfer the same to my grandson.What are the procedural requirements for the same.What are the other options available apart from the transfer by way of a will.?

Answer 1

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SAURABH KUMAR
Transferring a sole proprietorship is a problem. The entity has a limited life; it exists only as long as the owner is alive. Upon the owner’s death, the assets of the business go to his or her estate if he has not left behind a will, i.e. died intestate. if he has left behind a will then the assets will be distributed accordingly (this is known as dying testate). However, you can close down your proprietorship, and after making a detailed record of existing assets and liabilities at the time of its closure, you can transfer all of them through an agreement to a new proprietorship that can be opened by your grandson. But there is no process of transferring of business as whole. Common Documents Required in to register as sole proprietorship Firm :-ID and Address Proof as Pan Card/Passport/Voter ID/Aadhar Card/Driving License Copy of the Proprietor.One Business Place Address proof :- if Property on Rented :- Need Rent Agreement and NOC from Landlord.if Property is own :- Need Electricity Bills or any other Address Proof.Note : Proprietor Business place and home place can be sameFor VAT : - Needed Security Amount as Fixed Deposit or needed minimum two surety of dealer which already registered in that state VAT Registration.Note : In Some State Security Amount or Surety is not applicable like Delhi but in Most of the State its applicable and FD Amount or Guaranteed Amount Very as State wise Rules and Regulations. Registering Proprietorship Firm Onlinea) For the Service Tax Registration user can apply yourself via Online Procedure but problem is user have to submit documents physically in the department after service tax certificates are issue, s help from a expert or freelancers or Chartered Accountants,Company Secretary or Lawyers is advised.b) For the VAT Registration in some state user can apply online but advisable tp take help from a expert or freelancers or Chartered Accountants,Company Secretary or Lawyers. SOURCES- 1- https://indiankanoon.org/doc/1647695/ 2- https://indiankanoon.org/doc/232703/3- http://www.company-registration.in/sole-proprietorship/
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