Subscription of Shares in Kind

This query is : Resolved

Binish C (Querist)
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30 January 2010 Hello All,

We are incorporating a Joint Venture Company, and both the parties are infusing capital in equal proportion in exchange of shares.

It has been decided that one of the company will bring its software instead of capital in cash, for which the JVC will issue shares.

Can the company subscribe the shares against the supply of softwares?

If no, then why, and if yes, then how?

plz reply as soon as possible.

Regards.

Jagruti (CS)

Jagruti (CS) (Expert)
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30 January 2010 Yes Company can provide shares against service supplied by individual or third party. It is result in issue of shares of shares in consideration other than cash.

Kindly note while filing Form 2 you have to attach the agreement or contract which will be duly stamped and if it is agreement was not in writing at time of issue than you have to file Form 3 for the same