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venkat batchu   08 October 2021

Two proprietor firms in same premises

Sir, 

I am a small retailor running two firms in respective shops .  Bith are propritor by me..

 

Now, as I have to vacate one shop due to non feasibility and to save expenses, can I run both the firms in the other shop together or not ? Seeking guidance please..no gst... As combined turnover is less than the limits..



 6 Replies

Anusha Singh   08 October 2021

As per your query it is understood that you need information regarding running two business in the same premises.

There is no specific bar on two companies having the same address in the companies act. Please refer the following section:

 Section 146 REGISTERED OFFICE OF COMPANY.

(1) A company shall, as from the day on which it begins to carry on business, or as from the thirtieth day after the date of its incorporation, whichever is earlier, have a registered office to which all communications and notices may be addressed. (2) Notice of the situation of the registered office, and of every change therein, shall be given within thirty days after the date of the incorporation of the company or after the date of the change, as the case may be, to the Registrar who shall record the same : Provided that except on the authority of a special resolution passed by the company, the registered office of the company shall not be removed – (a) in the case of an existing company, outside the local limits of any city, town or village where such office is situated at the commencement of this Act, or where it may be situated later by virtue of a special resolution passed by the company; and (b) in the case of any other company, outside the local limits of any city, town or village where such office is first situated, or where it may be situated later by virtue of a special resolution passed by the company. (3) The inclusion in the annual return of a company of a statement as to the address of its registered office shall not be taken to satisfy the obligation imposed by sub-section (2). (4) If default is made in complying with the requirements of this section the company, and every officer of the company who is in default, shall be punishable with fine which may extend to fifty rupees for every day during which the default continues.

Hope it helps!

 

Regards,

Anusha Singh

G.L.N. Prasad (Retired employee.)     08 October 2021

The two business organizations are two sole proprietor concerns and there is no bar in law against two different organizations from the same premises when the sole proprietor is one and the same.

Advocate Bhartesh goyal (advocate)     08 October 2021

Yes you can run both firms in one shop.No restrictions.

venkat batchu   08 October 2021

Thanks a lot sir for your valuable reply... Can I ask you about rent agreement procedure..

 

That is, can the rent agreement be on my individual name ? 

G.L.N. Prasad (Retired employee.)     08 October 2021

Yes, the agreement can be in Individual name and incorporate the use of premises for commercial use by an individual as a sole proprietor for his various concerns"

venkat batchu   08 October 2021

Sir. Thank you very much for your advise.

 

With regards...

V s batchu

 

 


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