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 for 2-3 years?
As per the Accounting Rules, I think it's possible to raise the capital by the way of Cash by debiting its Accounts.
Whereas when we consider the part of Law, it doesn't allow so.
Dear Kunal ,
Go Ahead With the transaction - There is No Debar over it from Law and Accounting Rules. Also Refer (to Substantiate my Conslusion) - DCA in its circular No. 8/32(75) 77-CL-V dated 13th March, 1978
Regards
Ankit
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
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Naveen Fintech Pvt Ltd
Kolkata
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