According to new Companies Act, 2013 in case of newly incorporated company, share certificate should be given within 2 months from date of incorporation, in such a case whether Company can receive money from subscriber and in cash without opening of Bank account.
And that money where it should be kept till Bank account is not opened.
Dear Juhi,
Act clearly says that an escrow account is required to be opened seperately to park the application money, however if the subscripttion money is coming from nominal 2-3-4 shareholders, you may park the same (Park but not use) in any Current Account till the share allotment (Suggestible to be done within 3-4 days of the closure date of issue).
You also need to get the clearance from your Statutory + Secretarial Audior. It is advisable to refer CARO as well.
Regards,
Avneesh Mishra.
CAclubindia
