Co. incorp

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Asawari Malhotra

Asawari Malhotra (Querist)

30 August 2013 Is it compulsory for a company to buy a land or some property before incorporation and why ?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

30 August 2013 No such requirement, even rented premises also company registration can be taken

Ajay Mishra

Ajay Mishra (Expert)

30 August 2013 Hi

Generally not, before incorporation of company, it is not legal entity and it is not in existence, so it can not purchase in the name of company before incorporation.

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Asawari Malhotra

Asawari Malhotra (Querist)

30 August 2013 thank you sirs for the answers, i had another query, if its an initially incorporated pub ltd company and doesn't have any assets, the public still subscribes to its shares and buys them? if yes, isn't this very risky? Also, do they initially, till the company makes its own assets offer any other form of security to the shareholders? or is it that the shareholders buy the shares without any security?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

31 August 2013 Your share value not based on only fixed assets of the company, other than that the financial performance of the company is very important. risk on any investment on share will be decided based on the financial performance. so check the financial performance indicator for the company.

Equity share holders are owners of the company so cannot seek any security against the investment

Asawari Malhotra

Asawari Malhotra (Querist)

31 August 2013 thank you sir.. it was very helpful..

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