Initial share capital

Save Share

This query is : Resolved

Anil (Querist)

18 July 2014 Authorized Share capital of private company is 1 Lac. Two subscriber to MOA have agreed to invest 1 Lac but invest only 50,000 towards share capital. They spend 80,000 out of their pocket towards company expenses. They want the company to adjust 50K out of this amount as share capital invested and receive back 30K from company as reimbursement of expenses.

Can Co. do so ?

Also confirm that no form 2 needs to be filed in this case as the amount is invested by subscribers .

Ankur Garg

Ankur Garg (Expert)

19 July 2014 Anil Ji,

This is in continuation to your previous query. First it would be tuff to prove the expenses of Rs. 80,000/- towards incorporation of such samall company. Further the requirement that subscribes should deposit Rs. 1,00,000/- towards subscription amount cannot be replaced or managed by the adjustment of Rs. 50,000/- in the way you have mentioned. Reason being this kind of book entry cannot be the substitute of cheque of Rs. 50,000/- from subscriber deposited in company account as subscription money.

There is no need to file any allotment form to ROC for subscription money. You may wait for the confirmation from other experts.

Thanks

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now