holding nd subsidiary company query

466 views 2 replies

There is One Company  A PVTLTD.

AUTHORISED S/C = 2 CRORES, PAID UP CAPITAL= 1 CRORE, RESERVES= 1.20 CRORE,

TURNOVER= MORE THAN 100 CRORES

The Shareholders in the company are:

MR W - DIRECTOR

MR X- DIRECTOR

MR Y,

MR Z

 

 

Now there is another company B PVT LTD

AUTHORISED S/C = 1 CRORES, PAID UP CAPITAL= 1.45 lacs , RESERVES= 70.00 lacs,

TURNOVER= around 25 CRORES

The Shareholders in the company are:

MR W

MR X- DIRECTOR

MR Y- DIRECTOR

MR Z- DIRECTOR.

 

 

WE WANT TO MAKE THE COMPANY B AS THE SUBSIDIARY OF COMPANY A.

QUES 1: WHAT IS THE METHODOLOGY OF MAKING CO. B AS SUBSIDIARY OF CO. A?

QUES 2:  AT WHAT RATE SHOULD MR W PURCHASE SHARES OF B PVT LTD TO MAKE IT A SUBSIDIARY OF A PVT LTD WITHOUT INCURRING ANY TAX DEFAULT.

 

KINDLY ADVISE.

Replies (2)

To make B ltd. a subsidiary co. of A ltd., A Ltd. has to purchase more than 50% share capital of B Ltd. Remember, shareholding of W,X,Y,Z doesnt matter in this case. The reason being that a company is different from its owners. Company has a separate entity. A person can be shreholder of many cos. but it dont make holding-subsidiary cos. relation. COMPANY has to purchase the shares.

I fully agree with Mr.Abhishek regarding a company become subsidiary when other company purchases more than 50% of its paid up capital

Regards

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
16 June 2026
Sr. Associate / Assistant Manager | TAS / FDD

Boutique Investment Bank & Transaction Advisory Firm

Gurgaon

CA

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 18 June 2026
Article Assistance

RB KESHRI & CO.

Mumbai

CA Inter

View Details