Proportion of Shareholding

Save Share

This query is : Resolved

Ashraf Khan (Querist)

24 July 2009 Myself and my friend are about to start a Pvt Ltd company. The project idea is the effort of both of us. But he is financially better palced than I am. Meaning he can put in more funds at the moment and even later when funds would be required. I need guidance in understanding as to what should be the shareholding of each of us in the company and the financial impact the shareholding will have. I also wish to confirm that we have a very good understanding and trust amongst us.

Ankur Garg

Ankur Garg (Expert)

24 July 2009 Hi,

Minimum paid up share capital for a pvt. company is Rs. 1 Lac i.e. 10000 Shares @ Rs. 10/ per share.

If face value of yr share is Rs. 10 then u both will get 5000 shares each.

Initially you have to invest Rs. 50000 each to incorporate ur company.

Revert for further query.

Regards

Message likes : 1 times

Late CA Sampat Jain

Late CA Sampat Jain (Expert)

24 July 2009 proportion of shareholding is dependent on proportion of profit agreed. keep shareholding pattern as per profit sharing arrangemnt and extra funds can be shown as loan from shareholder

Message likes : 1 times

Ashraf Khan

Ashraf Khan (Querist)

27 July 2009 Thank You so much. Now I have a great degree of clarity on how to go ahead with this arrangement.

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