Question ID :
41154
418074
If Sole proprietor Chartered Accountant firm will be merged into a partnership firm. Whether that sole proprietorship firm have an option to de-merge later on.
If yes, how long the option is available for de-merger and whether ICAI reserves the name of proprietorship firm.
Posted by
Shobhit Bansal
on
Sep 27, 2021
Filed Under
MISC.
Sole proprietorship firm has the option to de-merge from partnership firm anytime. But ICAI not reserves name of proprietorship firm. Re-registration of proprietorship firm is required.
Posted by
CA. chunauti dholakia on
Sep 28, 2021
Answer ID :
81344
YES, SOLE PROPRIETORSHIP FIRM HAS THE OPTION TO DEMERGE. THE FIRM HAS TO DEMERGE WITHIN 5 YEARS. IF GIRM DEMERGE WITHIN 5 YEARS THE SENIORITY OF THE SOLE PROPRIETORSHIP WOULD BE COUNTED FROM THE DATE OF INCORPORATION OF FIRM.
Posted by
SHUBHAM SONI on
Sep 29, 2021
Answer ID :
81357
Demerger option within 5 years of merger
Posted by
CA JEET REWRI on
Nov 16, 2021