Aditi Bhardwaj (Practising Chartered Accountant & Mentor for CA students) (659 Points)
05 September 2016Hi,
I have a opc pvt ltd company setting up its business with a minimum share capital requirement of Rs. 100,000. My question is:
a) Can I hold/bring this share capital money in cash and present in the Balance Sheet as "Cash in hand"; or
b) Is it necessary to deposit the total share capital amount in the company bank account to commence operations.
What do regulations of Companies Act 2013 say?
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 05 September 2016
Payment can be made in cash. There is no restriction.
mohammad rasool baig
(Management Consultant)
(1026 Points)
Replied 10 September 2016
As per new companies Act, a company will not be allowed to receive share capital in cash. A seperate bank account needs to be opened for share capital. It will be applicable even in the case of private limited company
Please follow the below link
/articles/companies-will-not-be-able-to-receive-share-app-money-in-cash-18845.asp
mohammad rasool baig
(Management Consultant)
(1026 Points)
Replied 10 September 2016
Please refer section 42 of companies act 2013.
https://corporatelawreporter.com/companies_act/section-42-of-companies-act-2013-offer-or-invitation-for-subscripttion-of-securities-on-private-placement/
Pratik Shah
(Practising Company Secretary)
(4432 Points)
Replied 10 September 2016
I agree with Agrawal Sir. There are no restriction to take subscribers money in cash. Section 42 is for Private Placement. It has nothing to do with Capital amount from Subscribers to MOA.
Aditi Bhardwaj
(Practising Chartered Accountant & Mentor for CA students)
(659 Points)
Replied 29 September 2016
Thank you for the clarification. Much appreciate your response.
CAclubindia
