• Transfer of individuals asset to a company by one of the directors of the company

Kindly let me know if it is possible to Transfer ownership of an Individuals Asset to a pvt.ltd. company where the same Individual is also one of the Directors of that Pvt.Ltd.Company without paying stamp duty to the government ?

My question is: In a Two person company, Father (Dir1)& son (Dir2) being the Directors of a Pvt.Ltd. Company registered under Companies Act 2013. Both having equal shares. 1). Can son (dir2) also become nominee of the other director of the company? 2) Upon fathers (dir1) demise will his share in the company be passed on to son/nominee director/Director 2?
Asked 1 month ago in Property Tax from Lucknow, Uttar Pradesh

yes, it's possible to transfer ownership to company even if the individual is director in that company. For applicability of stamp duty, you need to check with someone locally as it's a state matter. In my opinion, stamp duty will apply on immovable properties.

 

Yes, son can become nominee of father's shares.

Lakshita Bhandari
CA, Mumbai
4255 Answers
239 Consultations

5.0 on 5.0

I don't think there is any such way as you need to transfer rights to company as both are independent authority even though individual is a director.

You might just give the company right to use property instead of transferring property.

Yes son can be the nominee for father's share but he cant be a nominee of a director because there is nothing like that.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
2688 Answers
24 Consultations

5.0 on 5.0

Instead of transferring the property you should give the property to the company on rent and claim rent expense.

Yes the son can be the nominee of director(father)

Please rate this answer 5 if you find it useful.

Tejas Shah
CA, Surat
41 Answers
2 Consultations

5.0 on 5.0

Hello,

 

Yes, it can be done. Sale or lease are the options. Son can become ht nominee of his father. The legal heir will get the share in the company.

 

I hope that this answer satisfies your requirements.

 

Regards,

CA Hunny Badlani

Badlani & Associates

Hunny Badlani
CA, Madhya Pradesh
1587 Answers
5 Consultations

5.0 on 5.0

Yes, your siblings cannot claim right on such shares.

You can read more here: https://www.business-standard.com/article/economy-policy/-nominee-of-shares-superior-to-legal-heirs-[deleted]_1.html

 

Hope this satisfies your query.

Naman Maloo
CA, Jaipur
2688 Answers
24 Consultations

5.0 on 5.0

Dear Sir,

 

Hope you are doing well !!

 

-Yes, son can be the nominee for father's share.

 

-They cannot claim right on such shares.

 

Payal Chhajed
CA, Mumbai
3730 Answers
50 Consultations

5.0 on 5.0

Yes, it is possible to Transfer ownership of an Individuals Asset to a pvt.ltd. company where the same Individual is also one of the Directors of that Pvt.Ltd.Company.

 

 

Payal Chhajed
CA, Mumbai
3730 Answers
50 Consultations

5.0 on 5.0

The Companies Act, 2013 allows a shareholder to make a nomination with regard to shares held by him in a company. A nomination is a written mandate given by a shareholder to a company describing a particular person, to whom the shares held in the company shall vest in the event of the death of the shareholder.

If the nomination is accepted, the only nominee would receive the shares and not the other legal heirs.

Hunny Badlani
CA, Madhya Pradesh
1587 Answers
5 Consultations

5.0 on 5.0

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