Investment on company behalf
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
09 May 2014
Can a company invest its cash in Fixed Deposits or equities. Are there any extra formalities or tax laws regarding these?
And does it needs to be a part of the objective in MOA?
And does it needs to be a part of the objective in MOA?
Nikhil Kaushik
(Expert)
10 May 2014
depositing in fixed deposit is a normal activity. for equity investment, you need ensure that MOA/AOA permits the same. Normally MOA is drafted to include the investment activities.
under tax laws there is no problem.
under tax laws there is no problem.
Message likes :
1 times
10 May 2014
its not compulsory to be included in moa but in gen most of co do.
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