Acceptance of deposite as per companies act 2013

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YOGESH (Querist)

15 May 2014 Dear sir,
Whether Statement in lue of deposite is required to be filed to ROC as per companies act,2013. even if the Company is not inviting any deposite from Public or Member,

Thanks

YOGESH

YOGESH (Querist)

15 May 2014 statement in liu of advertisement

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

14 July 2024 Yes, under the Companies Act, 2013, every company, whether private or public, is required to file a "Statement in Lieu of Advertisement" with the Registrar of Companies (RoC) under certain circumstances, even if the company is not inviting deposits from the public or its members. Here’s when and why this statement might be required:

### Purpose of Statement in Lieu of Advertisement:

The requirement for filing a Statement in Lieu of Advertisement is primarily to notify the Registrar and the general public that the company is not inviting deposits. This serves as a safeguard to prevent companies from misleading the public or stakeholders about their financial health or intentions regarding deposits.

### When is it Required?

1. **Initial Filing**: When a company is incorporated, it must file a Statement in Lieu of Advertisement along with its incorporation documents. This statement declares that the company has not accepted any deposits as part of its initial operations.

2. **Annual Filing**: Every year, as part of the annual compliance requirements, companies need to file Form DPT-3 (Return of Deposits) with the RoC. This form includes details about deposits accepted and repaid during the financial year.

- **Statement in Lieu of Advertisement**: Along with Form DPT-3, a private company (and certain categories of public companies) must file a Statement in Lieu of Advertisement stating that they have not invited or accepted any deposits that require advertisement under the provisions of the Companies Act, 2013.

### Key Points:

- **Compliance Requirement**: Filing the Statement in Lieu of Advertisement ensures compliance with Section 73 of the Companies Act, 2013, which regulates the acceptance of deposits by companies.

- **Penalties for Non-compliance**: Failure to file Form DPT-3 and the Statement in Lieu of Advertisement can lead to penalties and non-compliance issues, which may affect the company’s standing with regulatory authorities.

### Conclusion:

Even if a company is not actively inviting deposits from the public or its members, it is still required to file a Statement in Lieu of Advertisement along with Form DPT-3 annually. This ensures transparency and regulatory compliance under the Companies Act, 2013. It's important for companies to adhere to these requirements to avoid penalties and maintain good standing with the Registrar of Companies.

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