Collection of authorise capital

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Rupesh (Querist)
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29 August 2013 Dear Sir,
If a company is formed with paid up capital of One Crore , then is it compulsory to deposit that full amount with bank?

Similarly, if a LLP is formed with a contribution of Rs.1 Crore, then is it compulsory for us to deposit full amount in the Bank Account?

Ajay Mishra

Ajay Mishra (Expert)
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29 August 2013 Hi

No it is not mandatory to have a full subscribed amount in bank.

Generally the time period is not defined as and when such MOA subscriber will paid such amount.

In accordance with the provisions of section 36(2) of the Companies Act, 1956, all money payable by any member to the company under the MOA or AOA shall be debt due from him to the company. Further, a subscriber to the memorandum must pay for his shares in cash even if the promoters have promised him the shares for services rendered in connection with the promotion of the company.

Regards

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