Section 25 Company
This query is : Resolved
30 June 2010
A company has to convert its one project into Section 25 company as per agreement executed between company & governmen.
My query is whay & what is the best option available to the company:
1) whether the company demerge its said project and convert the same into section 25 company
2) whether form new section 25 company and transer/sale the said project to such new section 25 company.
Also inform about the procedure, advantages & disadvantage for above both options.
Please it is very urgent
My query is whay & what is the best option available to the company:
1) whether the company demerge its said project and convert the same into section 25 company
2) whether form new section 25 company and transer/sale the said project to such new section 25 company.
Also inform about the procedure, advantages & disadvantage for above both options.
Please it is very urgent
30 June 2010
Demerger will take a long time (approx 6 months), expensive (legal expenses), and then getting the resulting company registered as Sec 25 Company would also be difficult. Moreover, demerger will also not have any rationale.
A better and easier course of action would be to have a new sec 25 company and get the project / assignment transferred to it.
A better and easier course of action would be to have a new sec 25 company and get the project / assignment transferred to it.
30 June 2010
Thanks for your reply. Could you please inform about
1) the procedure of formation
2) privilegs & obligation of Section 25 company
1) the procedure of formation
2) privilegs & obligation of Section 25 company
30 June 2010
There is one good file submitted by Radhika, club member. Please find link:
https://www.caclubindia.com/share_files/details.asp?mod_id=4606
This will help. As regards, obligations, there are no such obligatons under the act. The RD will however, specify the same.
There are many benefits as many provisions of the act are not required to be complied with. I will try to compile and provide a list.
https://www.caclubindia.com/share_files/details.asp?mod_id=4606
This will help. As regards, obligations, there are no such obligatons under the act. The RD will however, specify the same.
There are many benefits as many provisions of the act are not required to be complied with. I will try to compile and provide a list.
30 June 2010
Thanks
01 July 2010
Dear Bharat
before proceeding further please confirm that the agreement executed between company and the govt. gives the permission to incorporate a new company or not for the said project.
Regards
Vishal
before proceeding further please confirm that the agreement executed between company and the govt. gives the permission to incorporate a new company or not for the said project.
Regards
Vishal
04 July 2010
There is no such condition in the agreement.
05 July 2010
In my view, no such provision is required in the agreement.
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