Question ID :
41102
conversion of sole proprietorship to partnership
Dear all,
Let us say
1.X and co is a sole proprietorship with x as the sole proprietor in existence for 3 years,
2.xy and co is a partnership firm with x and y as partners in existence for 1 year
3.Can both x( sole proprietor) and xy and co merge and start a new firm and will the experience of the sole proprietor x continue to the newly formed firm
Posted by
SIVAKANTH BADIDA
on
Jul 20, 2021
Filed Under
MERGER & ACQUISITION
Answer ID :
81203
Yes, Firm XY can take benefit of sole proprietor firm X through merger.
Posted by
JITENDRA KANKOTIYA on
Jul 21, 2021
Answer ID :
81204
If new firm will be formed by changing name, experience of proprietorship firm will not be continued to the newly formed firm.
Posted by
CA. chunauti dholakia on
Jul 21, 2021
Answer ID :
81207
Hi,
From the question I understand that X and Y intend to constitute a partnership firm and leverage the standing of Proprietor firm of X. In order to continue the Same, I believe that the existing partnership Firm of X and Y needs to be dissolved and Y be added as partner in proprietor firm X. With the addition of Y, the proprietor will be re-constituted as partnership firm.
Posted by
MAHESH JHAWAR on
Jul 24, 2021