About the Client
Our client owned industrial land registered under a proprietorship firm. The goal was to transition ownership into a corporate structure for better compliance, scalability, and risk management.
Project Background
Direct transfer of land from a proprietorship to another entity is restricted under authority rules. This posed a major challenge for the client, who wanted to achieve 100% corporate ownership without violating compliance requirements.
Our Role in the Journey
At My Legal Tax, we crafted a step-by-step restructuring plan to ensure smooth transition:
Step 1: Registered a new Private Limited Company with the proprietor holding 51%.
Step 2: Changed the constitution of land from proprietorship to Pvt. Ltd. Company.
Step 3: Facilitated a second registry of the land in the company’s name after CIC approval.
Step 4: Converted shares into dematerialized form and gradually transferred the remaining 51% shares, keeping authority records intact.
Step 5: After obtaining the Functional Certificate, updated authority records to reflect 100% corporate ownership.
The Result
Through careful planning and execution, the client successfully transitioned from proprietorship landholding to full corporate ownership – ensuring complete compliance, eliminating risks, and building a strong foundation for future growth.