A company within a Company

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Dhaneshwar Kapadia (Querist)
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11 March 2021 hello there,

please guide me through this query...

We run a Private Limited Company (Partnership) and as the business is growing we want to expand the business but there is a space constraint in our exiting unit so there is no option but to budge to a new location.

Now there are two options :-

1) To Form a company on new land with New name

pros - All new companies formed after oct 2019 come under new tax Slab ie 15% (currently we are 25%) also we can go through Subsidy

cons - but we have to bring up capital from our own pockets

2) To Form a company on new land by starting the new unit under exiting pvt company

Pros - The exiting plant can sponsor the new unit thus it will show up in expenses of balance sheet hence save tax

Cons - We cannot apply for any subsidy also we would still remain under 25% slab

i want solution wherein we can undergo subsidy come below 15% slab also the funds can be sponsored by the exiting unit

thanking in advance !!