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Transfer of fund from one company to another company
I want to transfer fund from a Limited company to a Private limited company. Both are group companies & has common major shareholding also some directors are common. The Limited company does not have any business (Nil Income) therefore funds in this company not required. Now I want to transfer funds in Private Limited company.
I want to know the best way so that there is no voilance of Companies Act and Income tax act specially deemed dividend. If any change is required in shareholding & directorship that can be made to comply with the provisions.
Please provide supporting provisions of companies Act and Income tax act.
Replies (5)
A Common Service Agreement will solve your purpose. RTP compliances you have to do in my view.
| Originally posted by : preeti | ||
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I want to transfer fund from a Limited company to a Private limited company. Both are group companies & has common major shareholding also some directors are common. The Limited company does not have any business (Nil Income) therefore funds in this company not required. Now I want to transfer funds in Private Limited company. I want to know the best way so that there is no voilance of Companies Act and Income tax act specially deemed dividend. If any change is required in shareholding & directorship that can be made to comply with the provisions. Please provide supporting provisions of companies Act and Income tax act. |
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you can go for inter Corporate Loan
| Originally posted by : Deepak Kumar | ||
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A Common Service Agreement will solve your purpose. RTP compliances you have to do in my view. | |
Not satisfied with your answer , please elaborate
Deemed dividend will apply on loan. Can shares be issued at premium by private ltd. company to limited company. Limited company will purchase shares and will give amount to Private Company. is this permissible under section 186 of companies act ?
Please suggest.
Yes it is permissible to issue shares subject to limits and approvals of Section 186
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