Two companies are incorporated with the same set of shareholders, are they the same or distinct und…
Two companies are incorporated with the same set of shareholders, are they the same or distinct under the companies act 2013?
They are distinctive, that is, they will be treated as different persons by the law, and they will be taxed separately.
A company has its own legal existence, its own share capital to progress its activities. What's more, it is created by law, it can hold properties in its name, it can enter into a contract with another person in its name. This basically means that the company is above and beyond the persons operating them.
So, to answer your question, if two companies are incorporated with the same set of shareholders, still, they will be treated like two distinct taxable entities by the Companies act.
It is pertinent to note here that the directors have to disclose their interest in other companies while signing up for a new company. Thus the Registrar of Companies shall know that both the companies are operated by the same people, but they will be treated as different persons taxwise nonetheless.
