Current account operation by legal heir
2 years ago
Sole proprietor expired.How to continue the running current account by the legal heir
A.Dear Sir,
Legal heir must file an application before the concerned Bank and get the Account transferred in his name with NOC’s of other family members and thus continue current account.
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Legal heir must file an application before the concerned Bank and get the Account transferred in his name with NOC’s of other family members and thus continue current account.
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A.Hi.
Transfer or change in the ownership of the business will include transfer or change in the ownership of business due to the death of the sole proprietor. In case of death of the sole proprietor, if the business is continued by any person being transferee or successor of business, it shall be construed as a transfer of business.
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Transfer or change in the ownership of the business will include transfer or change in the ownership of business due to the death of the sole proprietor. In case of death of the sole proprietor, if the business is continued by any person being transferee or successor of business, it shall be construed as a transfer of business.
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Ayantika Mondal @ Prime Legal
Responded 2 years ago
A.Hi,
In case of death of the sole proprietor, his legal heirs can legally continue the business but other legal compliance, either fresh firm will form or legal heirs will replace. You have to apply in same office which have issued certificate enclosing death certificate and legal heir certificate if required by authority.
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In case of death of the sole proprietor, his legal heirs can legally continue the business but other legal compliance, either fresh firm will form or legal heirs will replace. You have to apply in same office which have issued certificate enclosing death certificate and legal heir certificate if required by authority.
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A.The problem with the sole proprietorship is that unlike private limited company it ends with the demise of the person. So, you have to get the legal heir certificate followed by a succession certificate then only the bank will allow you to operate the account. So, try to get in touch with with a civil lawyer and apply for a succession certificate from the court
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Advocate Sinjari Bandyopadhyaya
Responded 2 years ago
A.Sole proprietorship is owned by an individual and the proprietor is personally liable for all the debts and responsibilities of the firm and all the properties possessed in the name of that Proprietorship firm actually belongs to the proprietor and therefore after the death of that Proprietor, his property /assets would be devolved upon his legal heirs. It is necessary to apply for the Succession Certificate by the legal heir and heiress of that deceased Proprietor.
When the sole proprietor dies, the business technically dies also so the deceased Proprietor's legal heir and heiress can continue the said firm after changing the bank account , PAN card etc in their names..
If the deceased person was a bachelor and his mother is alive then she will be the sole legal heiress.
If the deceased person was a bachelor and his mother predeceased then Class II legal heirs will succeed as per the Hindu succession Act,1956, as amended up to date.
If the deceased person was married and his mother is alive then his mother,wife and children will be the legal heir and legal heiresses.
When the sole proprietor dies, the business technically dies also so the deceased Proprietor's legal heir and heiress can continue the said firm after changing the bank account , PAN card etc in their names..
If the deceased person was a bachelor and his mother is alive then she will be the sole legal heiress.
If the deceased person was a bachelor and his mother predeceased then Class II legal heirs will succeed as per the Hindu succession Act,1956, as amended up to date.
If the deceased person was married and his mother is alive then his mother,wife and children will be the legal heir and legal heiresses.
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