27 September 2008
Can anyone help me on how many shares of rs 10 each can i allot myself if i plan to convert my existing proprietary firm to company . my company has been valued to 3 crores. so can i allot myself 30 lac shares of 10 each ?? Will I have to pay any income tax when i convert the same ?
28 September 2008
Yes you can. If you do so, you will be 100% holder. You have to take one shareholder allotting a minimum share of say, one two maintain minimum membership in the private ltd., company.
The question of incometax does not arise in conversion as you will be holding majority stake.
CAclubindia
