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
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
(Expert)
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.
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Amount transferred in HUF Account
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Nursery business
- GST input credit on commercial property
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- Working on Gold wastage during Melting of old gold jewellery
- TDS on Dashcam rent and allied services
- Intimation under section 245
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Urd purchase entry in tally prime
- Subject: Legal Remedy for Removal of Income Tax Demand for AY 2024–25 – Charitable Trust
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
