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Is bank account necessary immediately after incorporation

17 August 2019

A private limited company is been incorporated on 9th Jan 2019, there is no bank account until 30th of March 2019, one of its shareholder transferred it's share on 21th march is the transfer valid, without a bank account.

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4 Replies

Kala Kiran (464 Points)
Replied 18 August 2019

opening of bank account is mandatory immediately after the incorporation.

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Ankita Patil (39 Points)
Replied 18 August 2019

can you please refer me any section for this

ajinkya dharangaonkar (Company Secretary) (22 Points)
Replied 19 August 2019

As per section 10A of Companies act 2013 Declaration need to be filed along with proof of subscripttion money received by the company in form 20A with the concerned ROC within 180 days of incorporation of company, stating that the subscribers to the Memorandum of the company has paid the value of shares so agreed by them, along with a verification of registered office address of the company. And you need to attach Subscribers proof of payment for value of shares to form 20A.

Further company cannot accept subscripttion money in cash. Therefore you can not issue shares to subscribers to the memorandum without fulfilling the above post incorporation formalities. And hence transfer of shares which has not been allotted is not possible.