can any one guide me - while converting sole proprietorship into private limited company what will be its paid up and authorised capital? can we show unsecured loan from director to minimise paid up capital?
amit (Partner) (36 Points)
06 May 2009can any one guide me - while converting sole proprietorship into private limited company what will be its paid up and authorised capital? can we show unsecured loan from director to minimise paid up capital?
Gajendra R. Tiwari
(Senior Manager-Accounts & CA IPCC Student)
(429 Points)
Replied 06 May 2009
(iii) "private company" means a company which, by its articles,—
(a) restricts the right to transfer its shares, if any;
(b) limits the number of its members to fifty not including —
(i) persons who are in the employment of the company, and
(ii) persons who having been formerly in the employment of the company, were members of the
company while in that
employment and have continued to be members after the employment ceased; and
(c) prohibits any invitation to the public to subscribe for any shares in, or debentures of, the
company;
Provided that where two or more persons hold one or more shares in a company jointly, they
shall, for the purposes of this
definition, be treated as a single member;
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