Share capital Amount

Hi Team,

Shall we bring cash to the companies Share capital to a Pvt Ltd. Company. whether share capital money should be routed through Bank?

Replies (4)
Quick Summary
For private limited companies, share capital contributions must be channelled through banking systems. This is a legal requirement under the Companies Act, 2013, and RBI guidelines. Using bank transactions ensures transparency, creates a clear audit trail for accounting and tax purposes, and helps comply with anti-money laundering regulations. Cash contributions are not permitted for share capital in these companies.

For a Pvt Ltd. Company, share capital money should typically be routed through a bank. Here's why:

Banking channels help ensure compliance with regulatory requirements, like anti - money laundering norms.

Transactions through banks create a clear audit trail,making it easier for accounting and tax purposes. 

Bank transactions provide proper documentation of share capital contributions. 

Ensure compliance 

Thanks for your valuable comment sir.

  • As per the Companies Act, 2013 and RBI guidelines share capital must be routed through banking channels.
  • Cash contributions are not allowed for share capital in a Pvt Ltd company.
  • This ensures transparency, auditability, and compliance with anti-money laundering norms.

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