Calaculating Shares at premium

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

21 February 2011 Please help me.....
I have a company to be incorporated with authorised capital of 10 lacs and paid up capital of Rs 1,00,000 there are two partners who are running a sole popritorship firm have agreed to make a company now the exisitng firm's assets are to be en by the 2nd partner in return of shares to be issued at premium, now can I issue only 5200 shares of the issued capital at par and the remaining at premium
The valuation goes to 1.5 cr

parthasarthy naidu

parthasarthy naidu (Expert)
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22 February 2011 Since minimum two members are required for formation of a private limited company, it would be adviseable that both the partners subscribe to the Memorandum to the initial minimum capital of Rs.1,00,000/- in the following proportion:

1st partner Rs.90,000/- representing 9000 shares of Rs.10/- each
2nd Partner Rs.10,000/- representing 1000 shares of Rs.10/- each.

After the formation of the company, the 2nd partner can be allotted shares at premium as the authorised capital of Rs.10 lakhs will be sufficient to issue 5200 shares at premium to the 2nd partner (premium amount may be decided based on the valuation).

With the above arrangement, business can remain in control of the 1st partner by virtue of holding majority shares of the company.