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is there a legal procedure to split a private limited company
01-Dec-2023 (In Corporate Law)
Hi, I have 50% shares and also am director in a private limited company. Due to some reasons, we want to split the company in equally in two parts. I would like to know if there is any provision to do so and if it's there what and how.
Please take note of following -
1. You may go for the option of split off or spin off, or
2. You may opt for the option of demerger
3. You can also think on the line of subsidiary company making your current company a holding company.
All these works are being undertaken either at the National Company Law Tribunal or at the concerned High Court of the state depending upon the situation or on jurisdiction.
1. You may go for the option of split off or spin off, or
2. You may opt for the option of demerger
3. You can also think on the line of subsidiary company making your current company a holding company.
All these works are being undertaken either at the National Company Law Tribunal or at the concerned High Court of the state depending upon the situation or on jurisdiction.
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Adv. Pulkit Prakash
Delhi | 400+ Answers
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TPA 1882 does not require that a gift be made out of love or affection. A corporate person can gift a property under the explanation 1 of section 25, ICA1872, read in conjunction with TPA,1882. 10-May-2023
Can a company gift property to an employee?
Companies are allowed to make gifts and donations, but they must be regulated. Donations and gifts above a certain limit will become taxable. Section 56 of the IT Act, by certain clauses, allows for taxation in cases of transfers of shares without consideration above a specific amount. 09-Jan-2022
Can a company buy property in name of director?
A company may purchase property on its behalf, and one of the Directors may act as the representative of the company. If the property is purchased by a Director in his/her own name, then it does NOT belong to the company. 07-Feb-2019
Sir,
You can certainly split the company however there are ways to achieve the some. There are demerger scheme under which you may achieve your goals.
We would require more information to guide you accordingly.
Thanks
Saurabh
You can certainly split the company however there are ways to achieve the some. There are demerger scheme under which you may achieve your goals.
We would require more information to guide you accordingly.
Thanks
Saurabh
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Adv. Saurabh Kumar
Delhi | 25+ Answers
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Company is legal entity and the share is property of the company you can sale it only, it cannot divided among the directors. I you want get the value of your shares in the company either you sale it or you may claim benefit as per share, there is no provision in law for partition of the company.
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Adv. Rajesh Kumar
Delhi | 100+ Answers
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Hi,
Legally, there is no way of splitting the company into 2 parts. However, the the result which you want to achieve by splitting the company is possible and can be legally structured in terms of separating the business of the company into 2 by way of a business transfer, into another company or demerging the same business into another entity.
There are other ways possible, which can discussed further in greater detail, upon understanding the problem and designed result.
Thanks,
NB.
Legally, there is no way of splitting the company into 2 parts. However, the the result which you want to achieve by splitting the company is possible and can be legally structured in terms of separating the business of the company into 2 by way of a business transfer, into another company or demerging the same business into another entity.
There are other ways possible, which can discussed further in greater detail, upon understanding the problem and designed result.
Thanks,
NB.
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Adv. Nakul Batra
Delhi | 25+ Answers
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Yes you can do a demerger or a slump sale (i.e. Purchase of the Business Undertaking) wherein the employees, assets and liabilities in relation to that portion of the business can be transferred. There will be legal,tax and stamp duty related issues. Happy to discuss further.
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Adv. Shivam Tandon
Delhi | 25+ Answers
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