Andaman and Nicobar - Change Proprietor

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Procedure

Apply In Person:
To change the proprietorship of a business in India, the applicant needs to follow certain legal and procedural steps.

Step 1: Obtain a No Objection Certificate (NOC)

• If the business is in a rented premises, the applicant needs to obtain a NOC from the landlord stating their agreement to the change in proprietorship.
• If the applicant owns the premises, this step is not required.

Step 2: Draft a Sale Agreement:

• Prepare a sale agreement between the existing proprietor and the new proprietor.
• This agreement should include the terms and conditions of the transfer of ownership, including the purchase price.

Step 3: Advertise the Change:

• Place advertisements in a widely circulated newspaper, both in English and a regional language, notifying the public about the change in proprietorship.
• This is required to invite any objections from third parties.

Step 4: Obtain Objection Clearance:

• After the publication of the advertisement, allow a 21-day period for any objections to be raised by third parties.
• If no objections are received within this period, you can proceed with the change in proprietorship.

Step 5: Execute a Deed of Transfer:

• Prepare a deed of transfer or a partnership deed (if multiple owners are involved) to formally document the change in proprietorship.
• The document should be signed by both the existing and new proprietors in the presence of two witnesses.

Step 6: Update Registrations and Licenses

• Update all relevant registrations and licenses in the name of the new proprietor. This includes GST registration, licenses from regulatory authorities, and any other statutory registrations specific to your business.

Step 7: Update Bank Accounts and PAN:

• Inform your bank about the change in proprietorship and provide them with the necessary documents to update the account details.
• Also, update the PAN card by applying for a change in proprietorship.

Step 8: Inform Other Stakeholders:

• Notify your customers, suppliers, employees, and other stakeholders about the change in proprietorship.
• Update all relevant records and documents related to the business.

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Required Documents

• Sale Agreement
• No Objection Certificate (NOC): If the business operates from rented premises, a NOC from the landlord stating their agreement to the change in proprietorship.
• Deed of Transfer
• Identity Proof: Valid identity proof of both the existing and new proprietors, such as Aadhaar card, PAN card, passport, or driver's license.
• Address Proof: Address proof of both the existing and new proprietors, which can be utility bills, bank statements, or Aadhaar card, reflecting their current residential address.
• Partnership Deed (if applicable)
• Updated Business Registration
• Bank Account Documents
• GST Registration (if applicable)
• Other Licenses and Registrations

Office Locations & Contacts

REGISTRAR OF COMPANIES – ANDAMAN & NICOBAR
Registrar Of Companies, Block No.6,B Wing 2nd Floor,
Shastri Bhawan 26, Haddows Road,
Chennai - 600034, Tamil Nadu
Phone - 044-28270071
Fax – 044-28234298
Email - roc.chennai@mca.gov.in
Contact Details link

Eligibility

The eligibility criteria to change the proprietorship of a business in India may vary depending on the specific circumstances and legal requirements. Generally, the following factors are considered:

• Legal Capacity: The new proprietor must have the legal capacity to own and operate a business. This means they should be of sound mind, not disqualified by any law, and have the necessary legal authority to enter contracts and make business decisions.
• Consent of Existing Proprietor: The existing proprietor should be willing to transfer the ownership of the business to the new proprietor. Both parties should mutually agree on the terms and conditions of the transfer.
• No Objection from Third Parties: If there are any agreements, contracts, or legal obligations involving third parties (such as lenders, suppliers, or customers), their consent or no objection may be required for the change in proprietorship.
• Compliance with Legal and Regulatory Requirements: The new proprietor must comply with all applicable laws and regulations related to the specific industry and business operations. This includes obtaining necessary licenses, registrations, and fulfilling any statutory requirements.
• Financial Considerations: The new proprietor should have the financial capability to run the business effectively and meet its obligations. This may involve providing proof of financial stability, such as bank statements or audited financial statements, depending on the nature and scale of the business.

Fees

• The applicant has to pay the prescribed fee as request.

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

Please attach documents that can be used by people. e.g. links

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• The entire process can be completed within 30 -60 days.

Related Videos

Videos explaining the procedure or to fill the applications.
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Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

• Applicants must complete the application form before submitting it. Incomplete applications will not be accepted.
• Applicants must provide genuine information while applying for this procedure.

Required Information

• Name of the existing proprietor and new proprietor
• Address
• State
• City
• District
• Pin Code
• Mobile
• Email
• Business name
• Business address
• Email
• Fax
• Telephone
• Details of partners
• Details of bank account.

Need for the Document

• Changing proprietor refers to the process of transferring the ownership and control of a business from one individual to another. It involves a change in the legal status of the proprietor, where the existing proprietor relinquishes their rights and responsibilities, and a new proprietor assumes ownership and takes over the management of the business.

Information which might help

• This change can occur due to various reasons, such as retirement, sale of the business, death of the existing proprietor, or a decision to transfer ownership to another person for strategic or personal reasons. The process typically involves legal and procedural steps to ensure a smooth transition and to comply with applicable laws and regulations.

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

Companies Act 2013 link

Others

• The change in proprietorship is important for maintaining the continuity of the business and ensuring that it can operate seamlessly under the new ownership. It allows for a smooth transfer of assets, rights, and obligations, and enables the new proprietor to take charge of the business and make necessary decisions to drive its growth and success.