Co. incorp
This query is : Resolved
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
(Expert)
30 August 2013
No such requirement, even rented premises also company registration can be taken
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.
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
(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
(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
Equity share holders are owners of the company so cannot seek any security against the investment
Asawari Malhotra
(Querist)
31 August 2013
thank you sir.. it was very helpful..
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