Sir,
Can A pvt ltd company issue shares at premium to its own share holders, and new one as well as to raise money from the market for future expansion , as the co. has new projects in hand. The Authorised share Capital of the pvt ltd., co. is Rs.100000/- ( only ). first it should raise its Authorised share capital. The new project is around Rs120 cr.
What are the ways and means to raise capital . pls let me know sir.
Thanks and Regards.
Narendra
1) Yes, company law permits issue of shares to members at p remium. However, you have to take care of Sec.56(viib) of Income Tax Act 1961 from taxation point of view.
2) Sources of raising funds can be share capital, bank borrowing, unsecured loan from directors (out of their own income), inter-corporate borrowing etc.
Respected Sir,
Thankyou very much for your advise and guidance.
with warm Regards,
Narendra
CAclubindia
