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Abhishek Alex
I am retiring from a partnership(food business). I wanted to know if the foloowing are enough:
1.Amended deed of partnership showing im a retiring partner.
2. FORM NO. V (See Rule4) - The Indian Partnership Act,1932
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Bk Deshmukh
Greetings !!
We are coming up with a new company .. One of the cofounder wants shares which cannot be reduced .. eg he will be allocated 5% shares .. he does not want the percentage to be reduced if there is a venture investment in the compnay or the company goes for IPO .. is that possible and if yes how that can be done ??
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If you give the co-founder 5% whatever you are giving to others will be from the balance 95% how is his share going to be reduced ?
Please try to reframe the question and take an example so that i can understand better !
Thanks for the reply .. His concern is that if there a venture investment then his share percentage will be reduced .. He cited flipkarts example where both the founders were 50% partners but now are around 7% partners ... rest is with the venture capitalists and employees etc ... he wants a caluse in his appointment letter for the same ... as such we want to know if it can be done and how ??
CA Akash Agarwal 11 Oct 2017You have to put this in the appointment letter that in no case the share dilution will happen for him, So for eg: He has been given 5% stake, In furture whenever the stake dilution happens you have to make sure you dilute from the balance 95% and keep his 5% intact.
There is no law governing this principle, it is agreement between co-founders that for one of them the shares will not be diluted, Thats it !
To make it more clear, when there is a venture investment the co founders decide whose stake will be diluted and in what percentage
BKDeshmukh 11 Oct 2017Thanx .. I think it would be fair enough if we put it up as ... allocated 5% non diluting shares " ..
BKDeshmukh 11 Oct 2017Are you from Mumbai ??
CA Yash Jain 4 Nov 2017to analyse your problem in more simple way,
Let's say there are 100 shares out of which 5 shares are given to the co-founder, now when ever venture investment happens, offer them out of remaining 95. in that way neither his share will get reduced and you can offer plenty for venture investor.
I hope it was clarified
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Sud M
Can an NRI maintain an regular savings account while having NRO/NRE account in another bank?
No, If you are an NRI you cannot maintain a regular savings account in India irrrespective of you holding an NRO A/c in any other bank. If you already hold a savings account, you have to get that account converted to a NRO account as soon as you beome an NRI.
T&C applyR
Reena M
I am a tax payer. Now I am taking an over draft of 20 lac from my bank . While filing my tax details next time, Do I have to disclose how I used this 20 Lac ?
Not necessarily. In case of you have a business, the use of the overdraft will be reflected in the accounts itself. Or in the less likely case wherein you only have salary income, the use of the overdraft need not be disclosed in the income tax return.
T&C applyA
Alvin Lobo
Hello.
I have taken some loan from my brother who is a NRE and holding a NRE account.
I need some help in understanding
* How can I pay back my brother so that he is not taxed for the money received by me since I will be paying in INR.
* Now from what I understand I cannot pay back INR into a NRE account directly and that I can only deposit into a NRO account. Is this right ?
* is there any kind of declaration needed to be done to show this transaction is a payback and therefore should not be taxed
Really appreciate the help here
1) You can payback the amount to his NRO account in INR.
2) Yes you can deposit only to an NRO account.
3) A declaration from Chartered Accountant declaring that all taxes on the funds have been paid by your brother is required to be submitted to bank if he wants to repatriate (that is transfer to a bank account outside India), Only then the banker will permit repatriation.
