When a sole proprietor is converted into private ltd. company, what will be the capital at which it will be converted? Meaning thereby
If a sole proprietor is carrying on trading business, his capital is Rs. 20 lacs (this can be personal as well as from business and person is no different from sole proprietor for filing IT return so in return capital will include both).
While conversion, if the business is separated from person and the capital comes to around Rs. 10 lacs, whether authorised share capital should be 10 lacs or it can be formed at 1 lac also? Or it will be at Rs. 20 lacs as mentioned above?
Thanks
CAclubindia
