abhijit (legal ) 01 October 2009

susidiary and sister concern

a group of companies having 5 pvt ltd and 2 ltd companies wants to establish another company . What it should do? whether register it as sister concern or subsidiary or register as a separate entity and then increase its share and make a subsidiary?

what guidelines it should follow considering tax implications?

thanks

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NANDKUMAR B.SAWANT.M.COM.LLB.(MUMBAI),ADVOCATE

MOBILE.09325226691, 09271971251

e.mail adv.nbsawant@yahoo.co.in

e.mail.nandkumarbs@sify.com

REGARDING THE PVT.LTD.,LTD CO.AND SEPERATE ENTITY KINDLY NOTE THAT

1.A PVT LTD CO.IS HAVING UNLIMITED LIABILITY ON THE PERSON MANAGING THE SAME.

2.A LTD.COMPANY IS HAVING LIABILITY DIVIDED ON SHAREHOLDERS AS PER HOLDINGS.

3.SEPERATE ENTITY MEANS INDEPENDENT CO. WHICH HAS ITS ON LIABILITIES.

4 HENCE IT IS ADVISIBLE TO SUGGEST FOR SEPERATE ENTITY AS COMPARED TO SISTER CONCERN OR SUBSIDIARY BECAUSE INCOME TAX LIABILITY WILL BE INDEPENDENT AND WILL BE LESS AS PROFITS AND LOSSES WILL BE SEPERATELYACCOUNTED. AS COMPARED TO PVT.LTD AND LTD.CO.

THIS IS BRIEF SUGGESTION AND IT DEPENDS ON CURRENT TAX RATES .IN CASE ANY FURTHER HELP IS REQUIRED KINDLY SEND DETAILS .

WITH BEST REGARDS TO YOU YOUR FAMILY AND FRIENDS.

THANKING YOU

YOURS SINCERELY

NANDKUMAR B.SAWANT.M.COM.LL.B.(MUMBAI),ADVOCATE.