06 May 2009
sir what is the procedure under income tax act and companies act for conversion of two sole proprietorship into a private company? how paid up share capital will be calculated and how it will be divided in two proprietor? at which value assets are taken in the books of accounts of company? can u give me complete checklist?
06 May 2009
1. PVT LTD CO. IS A SEPARATE ENTITY- AMALGAMATION/ MERGER IS NOT APPLICABLE HERE. 2.you HAVE TO FORM A NEW PVT LTD CO HAVING AUTHORISED CAPITAL AS PER YOUR REQUIREMENT. YOU MAY MENTION IN MOA ABOUT THE TAKE OVER TO TAKE ALL THE BUSINESS OF THE PROP. 3. INCOME TAX WILL BE APPLICABLE IF ASSETS IS TRANSFERED (CAPITAL GAIN / LOSS)
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