Now , the Subscribers to the Memorandum of Association of the Company cannot delay the infusal of their money in respect of the shares subscribed by them

WHEN THE SUBSCRIPTION AMOUNT HAS TO BE REMITTED?

Until now, Companies Act is silent as to when the payment in respect of the shares agreed to be subscribed by them.

The subscribers would be deemed to have agreed to become
members of the company and on its registration the name of subscribers is required to be entered as members in the register of members of the company.

NO NEED TO FILE PAS-3 IN CASE OF INITIAL ALLOTMENT

Thus, there is no need to allot shares in the names of subscribers to the memorandum of association in respect of the shares agreed to be subscribed by them in subscription clause of the MOA.

Thus, in case of initial subscription,  no PAS-3 need to be filed.

FORM –INC-20A TO BE FILED AUTHENTICATING THAT INITIAL SUBSCRIPTION MONEY HAS BEEN RECEIVED.

Now , the Companies (Incorporation)Fourth Amendment Rules, 2018 which came into effect from 18th December, 2018  requires the following:

Declaration at the time of commencement of business.-The declaration under section 10A by a director shall be in Form No.INC-20A and shall be filed as provided in the Companies (Registration Offices and Fees) Rules, 2014 and the contents of the said form shall be verified by a Company Secretary or a Chartered Accountant or a Cost Accountant, in practice:

FORM INC-20A HAS TO BE FILED FOR THE FOLLOWING:

·      Subscribers Proof of Payment for value of shares.

· Certificate of Registration issued by RBI in case of NBFC companies

·   Approval if any required by  Securities and Exchange Board of India, (SEBI) .