Capitalisation of private company

Manav Raheja (Associate) (24 Points)

24 May 2014  

Hello, 

If a person has incorporated a pvt. Company under the 56 Act (in March 2014) but has not capitalised the company with Rs. 100,000 capital, can such person now - under CA 2013, capitalise without following S42 (private placement) ? The company applied for PAN and bank account and therefore the delay to capitalise. 

Please comment if promoter can simply subscribe to shares and company can allot within 60 days ( as per S42 of CA2013).  Any advice will be appreciated. 

Thanks,

Manav