New Shareholder bringing immovable property to the company

[piyush pophale]

Hello, 

           What is the procedure for a company to register a immovable property in its name if the property is currently belongs to another person who is not a shareholder of a company but he wants to be a shareholder of the company. The company has authorized and paid up capital of ₹ 1lac. Do we need to increase authorized capital and paid up capital of the company or  transfer existing shares to the new person SH -4 will be enough? Please advise

[Ramaswami Mohan]

1. you will have to increase the authorised share capital

2. By transfer of shares from other existing shareholders, it would mean that the  new incoming individual with immovable property would be selling his immovable property to another individual and not to the company.

3. it would be an instance of allotment of shares for consideration other than cash.

4. u will require the immovable property to be valued and also the shares of the co to be valued for allotment at a valve equal to the book value.

5. pl consider the tax aspect in the hands of the individual and in the hands of the co; as stamp duty has to be paid for such transfer.

regards,

Mohan

On Sat, 7 Nov 2020 at 15:26, piyush pophale <piyushpo...@gmail.com> wrote:

Hello, 

           What is the procedure for a company to register a immovable property in its name if the property is currently belongs to another person who is not a shareholder of a company but he wants to be a shareholder of the company. The company has authorized and paid up capital of ₹ 1lac. Do we need to increase authorized capital and paid up capital of the company or  transfer existing shares to the new person SH -4 will be enough? Please advise

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