Small Businesses in India +5 Can a private limited company in India issue equity/shares to a promoter with delayed payment options?

Small Businesses in India +5 Can a private limited company in India issue equity/shares to a promoter with delayed payment options?

Practically yes but answer will be depending on the circumstances as mentioned below

1. At the time of Incorporation

A private limited company should have minimum paid up capital of 1,00,000/-. Hence, at time of incorporation the promoters have to subscribe a minimum of 1,00,000/-

2. After incorporation

The promoters can subscribe for equity share capital and can pay any time later when the company needs.

How ?

Let's take a situation the company has authorised capital of 10,00,000 as per there articles. And promoters have subscribed for 5,00,000 shares. Here at the time of incorporation minimum of 1,00,000 is to be paid. Remaining 4,00,000 can be paid at any point of time.

Caution: Do make sure articles mention that promoters can pay the subscribed capital at a later point of time.


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