Proportion of Shareholding

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Ashraf Khan (Querist)
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24 July 2009 Myself and my friend are about to start a Pvt Ltd company. The project idea is the effort of both of us. But he is financially better palced than I am. Meaning he can put in more funds at the moment and even later when funds would be required. I need guidance in understanding as to what should be the shareholding of each of us in the company and the financial impact the shareholding will have. I also wish to confirm that we have a very good understanding and trust amongst us.

Ankur Garg

Ankur Garg (Expert)
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24 July 2009 Hi,

Minimum paid up share capital for a pvt. company is Rs. 1 Lac i.e. 10000 Shares @ Rs. 10/ per share.

If face value of yr share is Rs. 10 then u both will get 5000 shares each.

Initially you have to invest Rs. 50000 each to incorporate ur company.

Revert for further query.

Regards

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Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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24 July 2009 proportion of shareholding is dependent on proportion of profit agreed. keep shareholding pattern as per profit sharing arrangemnt and extra funds can be shown as loan from shareholder

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Ashraf Khan

Ashraf Khan (Querist)
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27 July 2009 Thank You so much. Now I have a great degree of clarity on how to go ahead with this arrangement.