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Can the legal heirs continue a business in the name of sole proprietor


24-Apr-2023 (In Documentation Law)
Dear Sir, My Father (sole proprietor) was running a fertiliser trading shop, unfortunately he died last week. Is that possible to continue run the shop in his name by his legal heirs? What are the legal rights of the heirs? What are all possibilities to keep that business continue?
Answers (1)

Answer #1
887 votes
In the case of a sole proprietary business concern, the proprietor and his business are one and the same. In case of death of the sole proprietor, his legal heirs can legally continue the business. However, there will be certain issues with GST registration, income-tax and such like. It is, therefore, advisable for the legal heirs to form a fresh partnership firm and take over the assets and the liabilities of the sole proprietary concern.
Advocate Swaminathan Neelakantan

Adv. Swaminathan Neelakantan

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Comments by Users

ASHOK KUMAR AGGARWAL
My elder brother was a sole proprietor of a firm, after his death can I eligible to run his business in the same name and style of firm.

Reply by LawRato
Legal heirs can legally run the sole proprietorship after the owner’s death. However, certain legalities need to be considered and fulfilled. It is recommended to hire a lawyer who can help you after understanding the facts and circumstances of your case in detail.

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