Procedure of changing the company's propritorship & even changing it's bank account in my name?

Question

Dear friends,

I reside in Mumbai, India. My father has expired some months ago. He was the sole propritor of the company.Even the bank account is in his name & he has forgotten to nominate me.(luckly there is no huge amt stuck in the account).

I would like to become the propritor & run the company & would also like the bank account of the company to be in my name . please tell me what procedure should i follow.i have only one sister & she has no objection if i alone handle the company .Everyone is with me .Please suggest a simple procedure where there is absolutly no hassles..

Answer 1

Hi: Proprietary firm also dies with the death of proprietor. In other words life of the firm is limited to the life of the owner.

In this case, since proprietor was your father, you need to obtain death certificate from competent agency. Once you get this certificate, you can approach the bank to claim the balance in your father's saving or current bank account.

If you wish to continue with the goodwill of the business started by your father, you can register this business in your name and continue to operate. You may open a new bank account in your name or firms name and request banker to transfer proceeds of your fathers account, in to this new account. This will be easy way to your banker too, since they will consider you as family member only.

Prop. business is easy to setup, inexpensive, you have simplicity in decision making and less statutory compliance factors. Again above explanation will have to reworked considering the type of business your father had, receivables - payables of the business, pending issues, family issues, taxations etc.

This depends on the size of the business and scope of its operations. My personal suggestion, depending on your brief is accept the challenge and you will succeed.

In today's competitive world, plan your business, take best advantages of technologies and media, strategise, monitor and manage your funds, and stand high to your competition.

Wishing you great business success.

Answer 2

Please approach Mumbai mahanagar palik and obtain the death certificate of your father.  Approach the appropriate jurisdictional court and apply for legal hiership certificate.  Submit it to the Bank.  Once the Court accords his assent to your claim, if there are no objections or counter claims, you can take over your father concern, intimating the changes to the commercial tax, income tax, Mumbai Mahanagar palik and the registrar of firms.