Apoorav Mehta (BUSINESS) 14 August 2018

Gift deed of a firm with land and total company

Hi ,

My father want to transfer his whole company ( company all the liabilities ans assests with property ) on my name by the way of gift deed . We need to pay the stamp duty plus regstration charges its ok .

My concern is that land is in the name of the Firm and My father is the priopertior of the firm so in which way we should procced so that the total company ( all liabilties + land ) will be registered under my name.

i want company name should be same only the priopritor name should be change every where.

Kindly help

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3 Replies

kirti kabra 15 August 2018

In the case of proprietorship, change the ownership from all deeds (Bank, rent agreements) by executing by a settlement deed. but execution and registration of Gift Deed will attract stamp duty,

 it will be prudent on the part of your father to  convert his proprietorship firm in to a a Partnership Firm inducting you as another partner and after some he can resign from the partnership firm which will be automatically converted to proprietorship firm. The partnership Agreement shall have to be drafted keeping in mind the ultimate objective of forming the partnership firm,

Apoorav Mehta (BUSINESS) 21 August 2018

is there is no option around because converting from priopritor firm to partnership firm is a lengthy process then again convert it into the priopritor firm then again a headache.