· All assets and liabilities of the sole entity that, immediately prior to the succession, are linked to the transaction become the assets and liabilities of the company; If one of the above conditions is not met (for example. B the sole proprietor sells his share in two years instead of withholding five years of participation), the amount of profits or profits resulting from the transfer of such intangible assets or assets that were not billed earlier under these conditions is considered to be the profits and profits that will be subject to the taxation of the successor company for the previous year when the requirements are not met. · The sole holder does not receive, directly or indirectly, a consideration or benefit in any way, except by allocating shares of the company; The transformation of an individual corporation into a limited company means a “transfer” within the meaning of the Income Tax Act 1961, as amended (Income Tax Act). In other words, the sole proprietor`s estate is transferred to the newly created company, making the sole holder taxable for all capital gains calculated on the transfer. However, there is a provision under Section 47 (xiv) of the Income Tax Act, which sets certain conditions for the exemption of potential capital gains. All personal property and buildings of the individual company are automatically transferred to Private Limited Company. No transmission instrument is required to be executed. (1) The corporation must have challenged the assumption of the single party as one of its main objectives in the statutes. If it does not contain the same thing in its object, the MoA must be modified to insert the object.
The procedure involves the registration of an entire company in the case of a new company, then the provision of other documents to complete the transaction and, finally, to terminate the transaction. 3. Buy-back contract/sale contract or transfer contract must be executed between the individual company and the private company to transfer all their assets and liabilities. The contract defines the details of all assets, whether material or intangible, that must be transferred to the company, it is up to the individual business owner to determine the class of assets he needs for the sale and the class of assets he must keep for his personal use. 6. The assumption is then carried out by the presentation of the agreement, also known as the contract and other documents, such as the PAN card and the certificate of incorporation and restitution of the allocation of shares by the company, when shares have been allocated to the exclusive holder`s consideration. These documents are submitted to the Registrar of Companies within 30 days of the closing of the sale and allocation of shares for pre-established commissions. The completion of this acquisition process has the effect of making all assets and liabilities relating to the individual business the assets and liabilities of the company. 1.
The seller continues to operate as the sole manufacturing activity of some of the first list below, referred to as “these products”. 4. The debts of the individual company cannot be transferred, so that the owner can either repay all the debts or obtain the agreement of the creditors to transfer the individual business to another company. Draft written sales contract explaining the terms of the sale or transfer.