A company within a Company
This query is : Resolved
11 March 2021
hello there,
please guide me through this query...
We run a Private Limited Company (Partnership) and as the business is growing we want to expand the business but there is a space constraint in our exiting unit so there is no option but to budge to a new location.
Now there are two options :-
1) To Form a company on new land with New name
pros - All new companies formed after oct 2019 come under new tax Slab ie 15% (currently we are 25%) also we can go through Subsidy
cons - but we have to bring up capital from our own pockets
2) To Form a company on new land by starting the new unit under exiting pvt company
Pros - The exiting plant can sponsor the new unit thus it will show up in expenses of balance sheet hence save tax
Cons - We cannot apply for any subsidy also we would still remain under 25% slab
i want solution wherein we can undergo subsidy come below 15% slab also the funds can be sponsored by the exiting unit
thanking in advance !!
please guide me through this query...
We run a Private Limited Company (Partnership) and as the business is growing we want to expand the business but there is a space constraint in our exiting unit so there is no option but to budge to a new location.
Now there are two options :-
1) To Form a company on new land with New name
pros - All new companies formed after oct 2019 come under new tax Slab ie 15% (currently we are 25%) also we can go through Subsidy
cons - but we have to bring up capital from our own pockets
2) To Form a company on new land by starting the new unit under exiting pvt company
Pros - The exiting plant can sponsor the new unit thus it will show up in expenses of balance sheet hence save tax
Cons - We cannot apply for any subsidy also we would still remain under 25% slab
i want solution wherein we can undergo subsidy come below 15% slab also the funds can be sponsored by the exiting unit
thanking in advance !!
24 September 2021
No. Not possible. The subsidy is given for generation of more employment, i.e for new unit & not to existing one.
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