Incorporation of a Company

This query is : Resolved

CA Megha Vijay (Querist)
Follow

24 December 2010 In case a person wants to start a business of foundry (relating to induction of iron, magnese etc) for it he is incorporating a company. Before this he wants to purchase a land. If the land is purchased in the name of the prompter, can that land be used in the business i.e. in the company after its incorporation? or Should the promoter first incorporate the company and then purchase the land in the name of the Company?
What should be done and what will the accounting treatment in the former case? And also suggest as there is any requirement of transfer deed to be made in the former case from the promoter to the company or it can be used in the name of the promoter by the company?
plz suggest at earliest as possible.

Hitender Gaur

Hitender Gaur (Expert)
Follow

25 December 2010 Land is assests on which you cant get the benifit of deprciation, if promoter is willing to incorporate a co. then show the land to the business on rent. it will be benificial for you.