Share capital for Cash !

Kunal (Service) (65 Points)

08 December 2010  

Abc Pvt Ltd is incorporated with a paid up share capital of 1 lakh. The promoters do not want to open a bank account for at least 2-3 years (as the company will not undertake full fledged activities).

 

Can the initial capital be bought in cash and shown as cash in hand (in balance sheet) for 2-3 years?