• Buying a property from company vs buying a company

I want to purchase a property which is registered under a Pvt ltd company . I think I have 2 options 

1. Purchasing a property from that Pvt ltd company or
2. Taking over that Pvt ltd company as new directors which have only that property on it.

which one is the best one? why? what are the pros and cons for both?
Asked 10 months ago in Property Law
Religion: Hindu

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9 Answers

Buy property from private limited company by registered sale deed 

Ajay Sethi
Advocate, Mumbai
89849 Answers
6516 Consultations

5.0 on 5.0

It depends you require the property for. What purpose. Then only I can tell you the same

Prashant Nayak
Advocate, Mumbai
28570 Answers
101 Consultations

4.4 on 5.0

You can take over the private limited company 

Ajay Sethi
Advocate, Mumbai
89849 Answers
6516 Consultations

5.0 on 5.0

You can take a transfer of shares of that company from the existing shareholders 

the property will continue to remain in the name of the company

only the shareholding will change

you will save on stamp duty and registration fee

but you will have to pay stamp duty on the share transfer forms 

Yusuf Rampurawala
Advocate, Mumbai. E: adv.yusuf.rampurawala@gmail.com
7074 Answers
79 Consultations

5.0 on 5.0

By becoming a director of the private limited company you cannot automatically own the proeprty that belongs to the company, it will still remain as company's property only until and unless the company is transferring this property by a registered sale deed to your name exclusively. 

Therefore you can buy the property by a registered sale deed duly executed by the authorised representative of the company 

T Kalaiselvan
Advocate, Vellore
80016 Answers
1674 Consultations

5.0 on 5.0

You would like to buy the property and would like have vacant possession, in that case you should inform the seller to deliver vacant possession or else you do not venture into the purchase. 

T Kalaiselvan
Advocate, Vellore
80016 Answers
1674 Consultations

5.0 on 5.0

Buying the Property directly is a good idea.

As buying the company requires lot of Due Diligence and Continued Compliances 

Abhinav Sabharwal
Advocate, New Delhi
41 Answers

4.5 on 5.0

Then direct purchase is better

Prashant Nayak
Advocate, Mumbai
28570 Answers
101 Consultations

4.4 on 5.0

Dear Client,
Buying a property from that Pvt. Ltd. company is a better option.
Thank You

Anik Miu
Advocate, Bangalore
5846 Answers
59 Consultations

4.9 on 5.0

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