Investment In Private Limited Company

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Querist : Anonymous

Querist : Anonymous (Querist)

07 March 2011 Dear Sir/s

1.What is the procedure to become member in an existing Private Limited Company.
2.What are the ways of investment in existing private company
3.How a private limited company raise capital from the non members and members
4.Can an individual through MOU/agreement INVEST AND TAKE PART IN ORDINARY COURSE OF BUSINESS OF PRIVATE LIMITED COMPANY.

Jayashree S Iyer

Jayashree S Iyer (Expert)
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08 March 2011 1. What is the procedure to become member in an existing Private Limited Company.

One can become a member of the private company by subscribing to its shares.

2.What are the ways of investment in existing private company

It can be by way of equity or preference shares or debentures.

3.How a private limited company raise capital from the non members and members

Private companies are prohibited from inviting the public to subscribe for shares or debentures of the company and they cannot accept deposits from persons other than its members, directors or their relatives. So they can raise capital through private arrangements from its members, directors or their relatives, friends etc.

4.Can an individual through MOU/agreement INVEST AND TAKE PART IN ORDINARY COURSE OF BUSINESS OF PRIVATE LIMITED COMPANY.

Yes.

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