1. A gift deed of land along with factory above it can be made and registered with the sub registrar office. Stamp duty and registration fee for same can be paid.

1. IF property title documents stand in name of Father, THEN Father can Gift the property to you.

2. 1. IF property title documents stand in name of FIRM, THEN Father can transfer the property ALONGWITH business title /goodwill to you, which will have to be shown in Income Tax Returns.

Father can execute gift deed for transferring his property in son name 

gift deed should be duly stamped and registered 

Since you are his sole heir you on his death would automatically inherit his property by law of succession. 

So there is no such need of transfer now.

However if he is willing to bear cost of registration then gift deed is an option. 

Is it registered under companies act?

Are these properties part of business?

Regards 

G.Rajaganapathy 

High Court of Madras 

It is not sale . 

it is proprietor  transferring land in favour of his son without any consideration 

you can execute a registered gift deed for the same. The proprietary concern is not a legal entity and its status is same as the individual proprietor.

Assets of the proprietor and proprietorship firm are same.

It will not be considered as sale.

- As per law, being the single owner of the business a person can transfer his sole proprietorship to his son , specially the firm is not registered by way of Gift Deed.or Gift Settlement Deed  as well. 

- As per Section 122 of the Transfer of Property Act, Gift is the transfer of certain existing movable or immovable property made voluntarily and without consideration, by one person called the donor, to another person called the donee, and accepted by or on behalf of the donee.

- Hence, for a Gift deed, Acceptance is mandatory by the donee , and such acceptance must be made during the lifetime of the donor , and if the donee dies before acceptance, the gift becomes invalid. 

- Further, after the acceptance by the donee , gift deed cannot be cancelled unless it is a conditional gift.

- Further, under the Transfer of Property Act, a Gift deed is mandatory to be registered. 

- As per law, there there is no difference between the Gift deed and Gift Settlement Deed, as Gift deed can be given to any person after paying stamp duty , whereas Gift Settlement Deed is made in favour of family members /blood relations only and the stamp duty is lesser compare to Gift deed.

- Yes, A Settlement deed is a better option for you. 

Best option is to get Gift Deed executed by your Father in your favor by paying stamp duty and registering it.

Response to your second post:

Subsequent to Gift, you can get the name of your father replaced by your name with concerned departments.

The execution of Gift Deed by your Father in your favor is not Sale, since it will be given out of love and affection and without consideration.

Even though the father is the sole proprietor of the company since the immovable property is in the name of the company he has to follow the procedures in law about transferring the company properties on the name of any third party 

In the absence of any guidance under the Act to ascertain the meaning and scope of the expression 'property of the company', reference may be made to the general law governing and regulating the transfer of property,

Hon'ble Supreme Court in Suraj Lamp & Industries Pvt. Ltd. vs.v State of Haryana & Others2 upon an analysis of Section 54 of TPA held that a transfer of immoveable property by way of a sale can only be made by a deed of conveyance, i.e. a sale deed. The Court has held that in the absence of a deed of conveyance (duly stamped and registered as required by law), no right, title or interest in an immoveable property can be transferred. While analysing the sanctity of an agreement / contract for sale, the Court held that such agreement / contract, not being a registered deed of conveyance (deed of sale) would fall short of the requirements of Sections 54 and 55 of TPA and would not confer any title or transfer any interest in an immovable property.

To give effect to any transfer of assets or liabilities in a business transfer, a company must obtain any necessary approvals, including corporate approvals from the board and shareholders, regulatory approvals, consents of lenders and other third parties; for example, if a company is selling its material assets.

the assets of the sole proprietorship concern are considered transferred to the newly formed company, which makes the sole proprietor liable to pay tax for any capital gains calculated on such transfer.

The property to belong to the company even the it is a sole proprietorship company.

Hence you may have to follow the procedures as laid down for transfer of company's assets to any individual or another company.

The three main ways in which a business can be transferred to a family member is as a gift, through a sale, or through a partial sale. You might think that a sale would always be the obvious choice because you can make money that way.

1. Since he is a sole proprietor he can transfer the properties of sole proprietorship to you, but if he wants to sell it to you then sale has to be supported by consideration. Sale without consideration is void.

2. Your father is also at liberty to execute a gift deed in your favour.

Your Father can execute Registered gift deed . 

There are some legal ways to accomplish the transfer of proprietorship from father to the son. The present owner of the business has to execute gift deed or quitclaim deeds in favor of the new owner who is the son in this case. All the assets of the business are to be listed out in the deed to avoid any confusions at a later stage. I

There are some legal ways to accomplish the transfer of proprietorship from father to the son. The present owner of the business has to execute gift deed or quitclaim deeds in favor of the new owner who is the son in this case. All the assets of the business are to be listed out in the deed to avoid any confusions at a later stage. I

Dear Sir,

The best way to go for the gift deed.

1. Your father should execute a Gift deed in your favour.

2. Gift deed should be duly stamped and  registered.

Yes, legally speaking, the proprietor and his/her business are one and the same. The same applies to his/her assets and liabilities too. Therefore, the proprietor cal very well dispose of the property by way of sale, gift, settlement or otherwise. For accounting implications, you may please seek guidance of a CA.

Have to execute gift deed and register at sub registrar office. Sole proprietorship is owner of firm`s property.

Father can execute settlement deed also if less registration charges. Not sale.