Conversion of proprietorship of two different to a company

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Amal.m.s

Amal.m.s (Querist)
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02 January 2014 conversion of proprietorship of two different individuals to a company.
the issue here is both the individuals took term loans in their individual capacity.
how can it be converted into a company?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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02 January 2014 well yes it can be. the banks can transfer the loans to individual to the company. But you need to ensure that both the proprietors hold atleast 50% ( in this case both should hold 50%) to comply with income tax act section 47(xiv).

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