Hi,
I have a opc pvt ltd company setting up its business with a minimum share capital requirement of Rs. 100,000. My question is:
a) Can I hold/bring this share capital money in cash and present in the Balance Sheet as "Cash in hand"; or
b) Is it necessary to deposit the total share capital amount in the company bank account to commence operations.
What do regulations of Companies Act 2013 say?
Payment can be made in cash. There is no restriction.
As per new companies Act, a company will not be allowed to receive share capital in cash. A seperate bank account needs to be opened for share capital. It will be applicable even in the case of private limited company
Please follow the below link
/articles/companies-will-not-be-able-to-receive-share-app-money-in-cash-18845.asp
Please refer section 42 of companies act 2013.
https://corporatelawreporter.com/companies_act/section-42-of-companies-act-2013-offer-or-invitation-for-subscripttion-of-securities-on-private-placement/
I agree with Agrawal Sir. There are no restriction to take subscribers money in cash. Section 42 is for Private Placement. It has nothing to do with Capital amount from Subscribers to MOA.
Thank you for the clarification. Much appreciate your response.
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