Query regarding for adt-1 & subscription money

Kapil,

Filing of ADT-1 is not mandatory for appointment of first Auditor by Board of Directors within one month from date of incorporation But IT IS GOOD SECRETARIAL PRACTICE TO FILE ADT-1.

Nothing was stipulated about receipt of subscripttion money,time frame or opening of bank account in Companies Act, however general practice is that Company open bank account and subscripttion money gets credited into that account. hence as such no penlties were prescribed in the ACT.

Companies Act 2013 does not prohibit getting share subscripttion money from initial subscribers in cash.  Sec.269SS of IT Act 1961 also is not applicable in this case. Hence there is no penalty if cash is accepted.  However, considering policy of the government to discourage cash transactions and as a matter of good corporate practice it is advisable to get subscripttion money by cheque.