Part ix company formation

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 October 2011 partnership firm with 15 partners intend to change to PVT ltd company.
My queries are
- Each partner have diff diff capital balance say...2lac 2.5 lac...8lac 25 lac etc... from beginning there was no fixed capital A/c & Partners current A/c. Also each partner have 6% share of profit with one taking 16% PSR. how this ll be converted to shares wen form company.
- Hw much ll be authorized share capital...(Actual total partners capital A/c balance being say 50lacs)
- if decided to form company with share capital hw to share this capital a/c balance?
- If it has been decided not to form company ltd by shares wat is the procedure?
- Firm has property (Assets) what are specific norms to be followed to take it into company.
- Can it be convered in middle of yr?
- wat ll happen to PAN /TAN regd with firm name? what if Tax been deposited for the same.

CS GURVINDER SINGH

CS GURVINDER SINGH (Expert)

04 October 2011 1) kindly balance the Capital Account of all partners and then make ratio of each partners capital account from total Capital Account of the Firm (say 100), then allot the shares in that ratio in Resulting Co..

2) Valuation may be done by the experts and on the basis of that the Capital Account of the Partners will be adjusted. Authorised Capital shall be equal or more than the Share Capital of the Company resulting out of conversion.

3) According to Ratio evaluate in First Step

4) Assets will be takeover by the Company subject to conversion, further there is no Capital gain Tax for succession of Firm by a Company.

5) Yes, It can be Converted in the Middle of the year. but the Firm have to file Income tax return for the part of the year it exists.

6) New PAN no. is required to be applied in the name of the company as the old one was in the name of Firm.(Copy of MOA and AOA is required to be enclosed with the application of PAN)
If Advance Tax is already deposited that can be adjusted at the time of filling of Return of the Firm. If it is in excess than can be claim as Refund.

For Further Query ask
Gurvinder Singh
09417470297
email: csgurvindersingh@gmail.com