akhil arshin (3 Points)
06 December 2020Our startups incorporation was completed on last January. We started our business and funds started to come to the company account from that month itself. But we never had an idea that we need to invest paidup capital before starting the business. What can we do now. Can someone help us regarding this.
yasaswi gomes
(My grammar is 💯 good I)
(7290 Points)
Replied 06 December 2020
No Minimum Paid-up Share Capital: The minimum paid-up share capital requirement of INR 100,000 (in case of a private company) and INR 500,000 (in case of a public company) under CA 2013 has been done away with. Consequently, the definitions of private and public companies stand amended.
No declarations for commencement of business, etc.: CA 2013 required all companies to file following additional declarations with the Registrar of Companies prior to commencement of business or exercising any borrowing power: (i) declaration by a director that minimum paid-up share capital has been paid; and (ii) company has filed verification of registered office.
Special Courts: Section 435 read with Section 436 provides the Central Government the power to set up special courts to try offences under CA 2013.
as long as you hold assets and cash in business, there is no need for capital requirement.
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