Acceptance of Deposits
Deposits are a means through which companies generally acquire funding. The Companies Act, 2013 defines “deposit” as any receipt of money by way of deposit or loan or in any other form by a company. The provisions concerning deposits are covered under Sections 73 to 76 of the Companies Act, 2013, which are generally read with the prescribed Rules. In line with the provisions of Companies Act, 2013, the monies so received will be as deposits or loans. A startup company, in the first five years are free to collect deposits / loans from any source without limit and without complying to Sn 73 (2) (a) of Companies Act 2013, on the strength of the statutory resolution passed at the general meeting of the Company.
