Holding subsidiary comapny

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2011 Hello there,

my company is listed one and now wants to incorporate another new private limited company which will be the subsidiary of my company.
Now my query is private company which is subsidiary of public company have same status that of public company, then while incorporating a new company whether it is compulsory to have at least 3 directors and seven shareholders and paid up capital of at least 500000?

or the another company (subsidiary) can continue with its name pvt ltd and with 2 directors and 2 shareholders?

Please reply urgently.and if possible give me some reference so that i can also study this in detail.

Thanks and Regards,
Nikita

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2011 not sure query is open for another expert...........

CS Mitesh Mehta

CS Mitesh Mehta (Expert)
Follow

08 December 2011 A Company incorporated as Private Company which is subsidiary of public company can continue with its name Private Limited with 2 directors and 2 share holders.

The Act has in several sections, identified a private company which is a subsidiary of a public company and placed it par with a public company, and thereby differentiated it from a private company which is not a subsidiary of public company.

It should be noted that this special treatment to the private companies which are subsidiaries of public companies does not create a separate class of companies, nor does it change the basic structure of such a company as a private company.

Following Exemptions/Privileges of Private Company is also available to pvt companies Subsidiary of Public Company

Section 12(1)- Two or more persons may form a private company

252(2) - Minimum number of directors in a private company shall be only two.

Querist : Anonymous

Querist : Anonymous (Querist)

08 December 2011 thank you for your kind reply

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