Deposit Company Permit For Free

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Deposits can be accepted by the company from public, directors or its members. It is a loan taken by the company and there are various terms and conditions that a company need to follow to accept them.

As per section 2(31) and rule 'deposit' includes any receipt of money by way of deposit or loan or in any other form by a company, but following loan does not include in deposit as mentioned by the Reserve Bank of India: -any amount received from central or state government directly or indirectly.

Furnishing of deposit receipts to depositors.- (1) Every company shall, on the acceptance or renewal of a deposit, furnish to the depositor or his agent a receipt for the amount received by the company, within a period of twenty one days from the date of receipt of money or realisation of cheque or date of renewal.

Such deposit, shall not exceed 10% of the aggregate of [Paid-up share capital, free Reserves and securities premium account] of the company, Such deposits are not repayable earlier than 3 months from the date of acceptance or renewal.