A question arises whether a HUF can become a proprietor of a concern. Proprietor is an owner of any concern and there is no legal bar in such a case. In case it is proposed to make a HUF as a Proprietor of any business concern, the best way would be to have a trade licence in such a name wherein it is clearly indicated that the HUF is the Proprietor of business concern. Once the trade licence is obtained, the other formalities like opening of the account can be done and then the business as usual can be carried on.
A Proprietorship concern is not governed by any specific law as such and therefore, there is no bar on HUF becoming a Proprietor of any concern or firm. In such a case it is advisable to make a declaration of the members as to carrying on business as its Proprietor. In the rubber seal it may be clarified that the HUF is proprietor.
It may be noted that the bank account of the Proprietorship business of which HUF is the Proprietor can be opened in any name which the HUF wants and the HUF can be the Proprietor of such business name. For example suppose, if the name of the Business is SWAAGAT which is a proprietorship concern of HUF namely Ramkumar ShyamKumar HUF, then the description can be as follows:-
Per Pro Ramkumar Shyamkumar HUF
Taxation in Business & Profession [Section 28 to 44]
Computation of income under the head 'Profits and Gains of Business or Professions' [Section 28 to 44]
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