Comapany without revenue can invest its funds to other companies

If a company don’t have revenue, can that company invest the funds in other Companies? Without any operation. What will be the implication.

Replies (2)
Quick Summary
This discussion explores whether a company lacking revenue can invest its funds in other businesses, even without active operations. It highlights that registered NBFCs have specific investment rights. For other companies, short-term investments are permissible, provided shareholder approval is obtained and the investments align with the company's objectives, such as earning interest or appreciation until core business operations commence.

If company is NBFC registered with RBI then it can invest in the interest of the company. But if it is not, then it can invest for short term so that as and when business take off the funds can be made available to do business as per MOA . Of course it must take shareholder approval justifying the short term investment to earn some income by way of interest or appreciation etc
Holding investment company ,CIC ,NOHFC are some example

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 07 October 2026
Article Assistant

Malhotra Rajesh & Associates

New Delhi

B.Com

View Details
Company
15 October 2026
Senior Accountant

Continental Belting Pvt Ltd

Mumbai

B.Com

View Details
Company
ARTICLESHIP 30 September 2026
CA Article Assistant

CA Suraj Garg & Associates

New Delhi

CA Final

View Details