Assume and A and B jointly holds a property. They intend to transfer the ownership to a sdn bhd comprising of 3 EQUAL shareholders. How do one go about it? Assume the sdn bhd is already set up.

Lets assume that they agree that the selling price is 500k. (BTW, must it be at market price assuming all of them are RELATED parties?)So, A and B will sell to company XYZ for 500k. But company XYZ is a $3 company, how can it buy the 500k property? If company XYZ do not intend to take up any loan, does that mean it will first have to put in 500k into the company as paid up capital??? Another way maybe is to let it remain as rm3 company but the rm500k is a loan from directors. Is that possible? What is the NORMAL way of doing it?

Thanks a lot for answers.

Hi Pai,

That's not what I asked. Basically, how do people transfer their property to a sdn bhd as a poperty holding vehicle for the family? Do the property have to be transacted at market value? If so, that would be very hard to do because that means one need to have a sdn bhd with huge paid up capital.

Thanks Pur-er

What if the property is sold to the company for rm3 only? That is the company issue 3 more shares of rm1 each to buy the property worth rm500k. The company paid up is now rm5. That is the property is being injected into the company for a nominal sum. Possible? How much is the stamp duty? Should be based on market value, but determined by who?

The reason being: if transacted at full value, the authorised and paid up capital of the company will be much higher. I understand there is some fees to be paid for high authorised and paid up caps and I am trying to avoid that. BTW, do you know how much need to be paid for paid up capital of, say, rm5mil?

The property is free of encumbrances.

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Added on October 27, 2009, 1:36 pmI am not applying for mortgage loan. Just transfer of assets into holding company.


This post has been edited by constant: Oct 27 2009, 01:36 PM