Paid-up capital

This query is : Resolved

pallav (Querist)
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20 July 2015 A Private Ltd was formed in March 2015. The Paid up capital was 10 Lakhs,

My query is..

1. That within how many days the amount of paid-up capital should be deposited in Company's Bank Account.

2. If the amount is still not deposited in bank,,what are the consequences of this..

Regards,,

Pratik Shah

Pratik Shah (Expert)
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20 July 2015 1. the amount should have been deposited within 2 months from the date of incorporation, because the company is required to issue Share Certificates to subscribers within 2 month and as you know, without receiving money, company can not issue share certificate.

2. if it is still not deposited, the company is in contravention of section 56(4) and the company is liable to punishable as per section 56(6). Plz read it once.

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pallav

pallav (Querist)
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20 July 2015 SIR,, WHAT IF THE SUBSCRIBERS ARE DIRECTORS OF THE COMPANY??

Pratik Shah

Pratik Shah (Expert)
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21 July 2015 It does not matter in this case. Only contravention of Section 56(4) will be there.

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