Co. incorp

This query is : Resolved

Share Report Follow Query Ask a Query

Asawari Malhotra

Asawari Malhotra (Querist)
Follow

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)
Follow

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

Ajay Mishra

Ajay Mishra (Expert)
Follow

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.

Message likes : 1 times

Asawari Malhotra

Asawari Malhotra (Querist)
Follow

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)
Follow

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)
Follow

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Vimlesh kumar

Shivchandra Jakhotia

Dhananjay Singh

cgagroshg cgagroshg

vinal

Subscribe Now

Co. incorp

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Article Assistant

GST CONSULTANCY

GST CONSULTANT

Accountant

CA Final