Acceptance of deposits from members

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 June 2015 DEAR EXPERTS

OURS IS A PVT LTD COMPANY. WE WISH TO START NEW PROJECT AND HENCE REQUIRE DEPOSITS FROM OUR SHARE HOLDERS IN WHICH THERE IS A PVT LTD COMPANY ALSO.

CAN WE ACCEPT DEPOSITS FROM OUR MEMBER WHICH IS A PVT LTD COMPANY AND ALSO HAVING ANOTHER PVT LTD COMPANY IN ITS SHARE HOLDERS ?

CAN WE ACCEPT DEPOSITS FROM INDIVIDUAL MEMBERS (SHARE HOLDERS), IF YES, WHAT ARE THE FORMALITIES PRECAUTIONS TO BE TAKEN.

REGARDS

Shashikant Sharma

Shashikant Sharma (Expert)
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15 June 2015 Any amount received by a company from any other company will not fall within the preview of Deposit.

MCA has issued exemption notification for private companies in which private companies can accept unsecured loan from members not exceeding 100% of paid-up capital and free reserve and file a form which yet to be prescribed by MCA. Note that this notification is not published in official Gazette.

Till that company can take unsecured loan from members by following procedure laid down in Section 73(2).