PAID UP CAPITAL NOT SECURED

This query is : Resolved

Shreyas Bharadwaj (Querist)
Follow

20 May 2020 I have a OPC which was registered on June 2018. The paid up is 1 lakh, which i have not secured, what happens to the company? Does it become defunct? Are there any penalties? Can i convert the OPC into private limited without any legal issues?
Thanks for your time.

c.bakshi

c.bakshi (Expert)
Follow

21 May 2020 NOTHING WILL HAPPENED. THIS AMOUNT IS ALWAYS UNSECURED. MOREOVER, FOR CONVERSION OF OPC TO PVT LTD, YOU CAN WAIT TILL 20TH JUNE,2020. THEN YOU CAN CONVERT BY COMPLYING ALL THE PROVISIONS OF COMPANIES ACT 2013

Message likes : 1 times

Shreyas Bharadwaj

Shreyas Bharadwaj (Querist)
Follow

21 May 2020 Even if i have put the 1 lakh in account it is not a problem?

Upgrade to CAclubindia Pro. Subscribe Now!

Shreyas Bharadwaj

Shreyas Bharadwaj (Querist)
Follow

21 May 2020 My apologies. I mean even if i haven’t put the 1 lakh paid up capital it is not a problem?

c.bakshi

c.bakshi (Expert)
Follow

22 May 2020 see you have to deposit that money once and thereafter you can utilize the money for the operations or smooth running of the company. but you have to deposit the money once into the current account of the company as subscription money. as by filing an application for incorporation of the company, you agreed to take the shares of the company and pay a sum of money. talk to the person from whom you incorporate a company.

Message likes : 1 times