Investment by Private Limited company
This query is : Resolved
16 December 2021
Dear Sir,
Can a private limited company who deals in manpower consultancy business invest in shares or mutual funds just like an individual person. Are there any restrictions.
What will the Taxation impact if shares or mutual funds are sold in future years.
Please help me in this matter.
Regards,
Divyesh Jain
Can a private limited company who deals in manpower consultancy business invest in shares or mutual funds just like an individual person. Are there any restrictions.
What will the Taxation impact if shares or mutual funds are sold in future years.
Please help me in this matter.
Regards,
Divyesh Jain
19 December 2021
Yes, a private limited company can trade and invest in shares of any public company in India if its Memorandum of Association allows such investing.
If its objects includes activity of investing and trading then, such private limited company can invest in stocks.
If its objects includes activity of investing and trading then, such private limited company can invest in stocks.
31 January 2022
The object clause of the company states that the company provides consultancy services. There is no separate clause for investing by the company.
Can the company invest in FD or Mutual funds instead of keeping the amount in Bank.
Can the company invest in FD or Mutual funds instead of keeping the amount in Bank.
31 January 2022
Generally no. It depends upon its profit ratio from such investment. Either it has to register as NFBC, or it can trade only in derivatives.
31 January 2022
Ok, Thanks for your reply
01 February 2022
My Pleasure ...
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