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Dear friend, Pre-incorporation Expense means all costs incurred in the formation of a firm (Incorporation or Registration of a company), it will include advertising, promotional activities, employee training, etc.,This includes all expenses like purchasing material, management expenses for formation etc. This expenses are shown under the head Misc Expenditure and are amortized over a period of 5 yrs as a deferred tax asset. -- preliminary analysis of the conceived idea, --detailed investigation in terms of technical feasibility and commercial viability to establish the soundness of the proposition, -- preparation of ‘project report’ or ‘feasibility report’ and its verification through independent appraisal authority (before giving final approval to the proposition) and -- organisation of funds, property and managerial ability and assembling of other business elements.

Dear All, pursuant to applicability of AS 26 - Intangible assets, Pre–incorporation expenses can no longer be considered as an asset. It needs to be expensed off as and when in the year the expenses are incurred. However, for tax purposes, the benefit would be recieved in five years.

Pre–incorporation expenses denote expenses incurred by the promoters for the purposes of the company before its incorporation. Broadly, these include expenses in connection with: ----(a) preliminary analysis of the conceived idea, ----(b) detailed investigation in terms of technical feasibility and commercial viability to establish the soundness of the proposition, ----(c) preparation of ‘project report’ or ‘feasibility report’ and its verification through independent appraisal authority (before giving final approval to the proposition) and ----(d) organisation of funds, property and managerial ability and assembling of other business elements. These expenses should be properly capitalised and shown in the balance sheet under the heading “Miscellaneous Expenditure”. There is no legal requirement to write–off these expenses to profit and loss account within any specified period of time nor is there any rigid accounting convention in regard to this matter. However, good corporate practice recognises the need

Hello Friend, Pre Incorporation Expenses are the Expenses which are incurred by the promotor before the incorporation of Company Following are the Examples of Pre Incorporation Expenses: 1. Printing of MOA, AOA and Other Documents 2. Fees paid for Consultancy taken for business 3. Feasibility Report preparation expenses. And Other which is incurred by promotors for the business incorporation These Expenses are charged in the year of incorporation and in the income tax Act 1961 these expense can be claimed in the 5 year starting from the year in which company was incorporated and consequently DTA has been created for the same. Thanks and Regards CA Aakash Tanwer

Pre-incorporation Expense means all costs incurred in the formation of a firm (Incorporation or Registration of a company), it will include advertising, promotional activities, employee training, etc.,This includes all expenses like purchasing material, management expenses for formation etc. This expenses are shown under the head Misc Expenditure and are amortized over a period of 5 yrs as a deferred tax asset. -- preliminary analysis of the conceived idea, --detailed investigation in terms of technical feasibility and commercial viability to establish the soundness of the proposition, -- preparation of ‘project report’ or ‘feasibility report’ and its verification through independent appraisal authority (before giving final approval to the proposition) and -- organisation of funds, property and managerial ability and assembling of other business elements.

Hiiii friend,....... **Pre Incorporation exp.** The Pre-Incorporation expenses are expenses which are incurred at the time of formation of the company. This includes all expenses like purchasing material, management expenses for formation etc. This expenses are shown under the head Misc Expenditure and are amortized over a period of 5 yrs as a deferred tax asset. Regards,

Hello Roshni Pre–incorporation expenses denote expenses incurred by the promoters for the purposes of the company before its incorporation. Broadly, these include expenses in connection with: ----(a) preliminary analysis of the conceived idea, ----(b) detailed investigation in terms of technical feasibility and commercial viability to establish the soundness of the proposition, ----(c) preparation of ‘project report’ or ‘feasibility report’ and its verification through independent appraisal authority (before giving final approval to the proposition) and ----(d) organisation of funds, property and managerial ability and assembling of other business elements. These expenses should be properly capitalised and shown in the balance sheet under the heading “Miscellaneous Expenditure”. There is no legal requirement to write–off these expenses to profit and loss account within any specified period of time nor is there any rigid accounting convention in regard to this matter. However, good corporate practice recognises the need to write off these expenses to profit and loss account whtin a period of 3 to 5 years. Thanks

Dear Roshni Pre-incorporation Expense means all costs incurred in the formation of a firm (Incorporation or Registration of a company), it will include advertising, promotional activities, employee training, etc., before the firm can starts its normal business activities. It is also called preliminary expenses or startup expenses.It will be treated as a deferred revenue expenditure and will shown in the asset side of the balance sheet . The same will be debited in the five subsequent years' Profit and Loss account and set off. Kind Regards Vinod.P