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Transfer of property to a private company

Saanchita (Student) (26 Points)

09 December 2015

Dear learned lawyers, What is the procedure for an individual to transfer his personal immovable property to a newly formed private company? Will this be executed via transfer deed or what documentation is required for the same? Is such a transfer valid? If yes, what are the legal implications and tax implications?

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5 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8722 Points)
Replied 09 December 2015

Transfer of immovable property to a private limited company is as same as like individual person to person. Because A company or association of persons can be created at law as legal person so that the company in itself can accept.

Saanchita (Student) (26 Points)
Replied 09 December 2015

Thank you for your reply sir. :)

What if in this particular case, there is no consideration involved, will this be considered a gift and goverened by those laws?

Facts: A father wishes to give an immovable property to his children's newly formed private company. What is the procedure to be followed?.

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8722 Points)
Replied 09 December 2015

If the property transfers to the company, the company name must be appear on the papers. So that the property rights can be enjoyed by the company but not children. If the property gives as a gift to children, the children can be shown as investment in the private company in the form of property.

Saanchita (Student) (26 Points)
Replied 09 December 2015

So can the property be transferred as a gift directly to the company?

Or must it be transferred like the usual property transfers through a transfer deed even though there is no consideration involved in the transaction?