Share application money in cash

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This query is : Resolved

sangita daga (Querist)

27 April 2012 can share application money can be received in cash by the pvt ltd cos..if not thn how much is the limit...?

CA Prashant Gupta

CA Prashant Gupta (Expert)

27 April 2012 there is no limit. A company can receive any amount of share application money in cash.

The problem is on the part of person paying the cash. He should be in position to show the source.
Also to be a safer side not advisable to pay cash in excess of Rs. 20,000/-

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sangita daga

sangita daga (Querist)

28 April 2012 thankz a lot sir. Is there any restriction for partly paid up shares.? I mean its upto Company whether they want to call whole full amount of shares or keep it party paid..?

CA Prashant Gupta

CA Prashant Gupta (Expert)

28 April 2012 Its a call of comapany, whatever they want to call as share capital, the remain will be uncalled.

The private limited co. can decide in board meeting when and how much to call the share capital money.

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sangita daga

sangita daga (Querist)

28 April 2012 thank u so much sir..

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