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Sir is there any exemption to Pvt Ltd companies regarding acceptance of deposits from members against public company
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Specific Private companies enjoy the exemption. They can accept deposit from member without any limit. They are mentioned in point 4 below. Maximum limit for accepting deposit from public is ----- of aggregate of the paid up share capital, free reserves and securities premium account: 1. Non eligible public co. - 35% 2. Eligible public co. - 10% 3. Private co. other than below - 100% 4. Specific private co - No Limitapplicable - Such co. include: (i) a private company which is a start-up, for 7[ten years] from the date of its incorporation; (ii) a private company which fulfils all of the following conditions, namely:- (a) which is not an associate or a subsidiary company of any other company; (b) the borrowings of such a company from banks or financial institutions or any body corporate is less than twice of its paid up share capital or fiffy crore rupees, whichever is less ; and (c) such a company has not defaulted in the repayment of such borrowings subsisting at the time of accepting deposits under section 73
Thread Starter
Lakki KamuMam such specific Pvt co,is required to issue circular,filing with roc,DRR, certificate of no default when it exceeds 100% of psu+free reserves+sp or exceeds 7yrs start up or other conditions exceed stated by u regarding specific
These conditions from Section 73 shall not apply to private Companies which accepts from its members monies not exceeding one hundred per cent, of aggregate of the paid up share capital and free reserves. However, for private companies accepting more than 100% deposits do not enjoy this exemption.
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