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Mudit Aggarwal   04 December 2024

Transfer of mes registered firm after death of sole proprietor

My sister, who is her husband's legal heir, wants to get their MES firm transferred to her after his death, but we are confused about what to do. Someone suggested applying for the firm's delisted and then applying for a new registration. What if we get the firm unlisted, and the running contracts will lapse?



 4 Replies

Anshu Sharma (LAWFINITY SOLUTI   04 December 2024

Hi,

I understand your concern. When a sole proprietor passes away, the transfer of the firm can be a bit tricky. If you choose to delist the firm and re-register, you may risk losing the existing contracts as they would typically be tied to the registered entity.

A better approach might be to explore transferring the firm to your sister as the legal heir, which could allow the business to continue operating smoothly without disrupting existing contracts.

To get more detailed guidance on how to proceed, feel free to reach out to me. I'd be happy to assist.

 

T. Kalaiselvan, Advocate (Advocate)     04 December 2024

You can consult a local consultant having experience in this regard and proceed as suggested.

P. Venu (Advocate)     04 December 2024

The so-called registration with MES is an internal process. MES authorities or those familiar with MES activities alone would be in a position to provide guidance.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     05 December 2024

Transferring an MES firm after the demise of the sole proprietor can be a complex process. To transfer the firm to your sister, who is the legal heir, you'll need to follow these steps: - *Obtain a Legal Heir Certificate*: This certificate is essential to establish your sister's rights as the legal heir. You can obtain this certificate from the concerned authorities.¹ - *Apply for Transfer of Ownership*: Your sister will need to apply for the transfer of ownership of the firm in her name. This can be done by submitting the required documents, including the death certificate of her husband, the legal heir certificate, and other relevant papers. - *GST Registration*: If the firm has a GST registration, your sister will need to apply for a new registration in her name. She can do this by filing Form GST REG-01 electronically on the common portal.² - *Update Bank Accounts and Licenses*:

 Your sister will also need to update the bank accounts and licenses in her name. This may involve submitting the required documents and obtaining fresh licenses or permissions.

Regarding the concern about running contracts lapsing if the firm is unlisted, it's essential to note that the contracts will continue to be valid, but your sister will need to inform the concerned parties about the change in ownership.


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