Share capital

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CA Nilesh Thakker (Querist)

11 March 2010 Can private limited company be formed without share capital? It has only share application money at end of the year.

CA Robin Betala

CA Robin Betala (Expert)

11 March 2010 Company can be formed without share capital
This are companies limited by Guarantee.

Ankur Garg

Ankur Garg (Expert)

11 March 2010 Kindly visit the link below:

https://www.caclubindia.com/articles/basic-understanding-about-companies--2889.asp

CA Nilesh Thakker

CA Nilesh Thakker (Querist)

11 March 2010 Thanks for your reply

I have one more quetion on this. If private limited company incorporate on 31st March i.e. last day of accounting year as per MOA/AOA and has only share application money even that also less than 1 lac, in that case what should be done?

Ankur Garg

Ankur Garg (Expert)

11 March 2010 Share application money is just a proposal money as liability. Without allotment of equity shares to the proposed allottee share application can not be treated as paid up capital of the company.

CA Nilesh Thakker

CA Nilesh Thakker (Querist)

11 March 2010 Thanks once again. But what will be the responsibilty of the statutory auditor of the company in regards to corporate law compliances?

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