Death of sole proprietor

Dear Ms Shreya, 

Although the proprietorship concern finishes with the death of the proprietor however the legal heir can continue the business under his name. The heir will have to get lot of documents changed such as GST Number, PAN, etc etc. Further, the accounts will have to be transferred to in new proprietorships name or other business entity as the case may be. For this you may take assitance from a Chartered Accountant. 

Further, contracts generally incldue a clause that contracting party shall include his heir, successors, administrators, executors etc. Thus the contract has to be fulfilled by the legal representative. In India, Civil liability is transferable unless specifically restricted from being transferred. 

Regards

Shubham Bhardwaj (Advocate)

District & Session Court, Chandigarh

Punjab & Haryana High Court, at Chandigarh

Disclaimer:- Opinion is only for guidance.