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INC-20A Commencement of Business

17 June 2019

Can a subscriber bring his subscripttion money in cash?

And, in such a case for the purpose of proof of payment for INC-20A, can we attach the share capital ledger?

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7 Replies

Yogesh Dave (141 Points)
Replied 18 June 2019

yea. subscribers can bring cash.. u have to attach bank statement

Kush Khandelwal (7 Points)
Replied 18 June 2019

The company doesn't have a bank account yet. Can't we show the amount as cash in hand?

Yogesh Dave (141 Points)
Replied 18 June 2019

first open the current bank account and then file the form INC-20A.

company should pass BR resolution for opening of bank account within 30 days of company incorporation.

INC-20A file within 180 days from the date of incorporation of company

Kush Khandelwal (7 Points)
Replied 18 June 2019

The issue is that even after repeated reminders, the client has not opened the bank account. And, tomorrow is the last date of filing INC-20A. If the bank account br is to be passed in such time, then we can't do anything to avert that non-compliance now.
But, since as per I'm research and ICSI Faq assist, as there is no prohibition in the companies act, 2013 regarding subscriber bringing share capital money in cash, then in my opinion, this seems to be the only way out for the company.

Yogesh Dave (141 Points)
Replied 18 June 2019

go ahead

Kush Khandelwal (7 Points)
Replied 18 June 2019

Would sincerely request to provide you opinions in this matter and any possibile consequences.

shaifali (CA) (22 Points)
Replied 30 August 2019

I am facing the same issue, can you please tell, how can we show share capita as cash contribution Read more at: https://www.caclubindia.com/forum/details.asp?mod_id=517571#reply