Certificate of Receipt of Subscription Money
Companies are required to receive share subscription money from each director in the ratio of share taken or subscribed by him as mentioned and promised in mentioned in memorandum of association. Such money must be deposited in the bank account of the company, within thirty (30) days of registration of the company.
As per section 17 (3) of Companies Act Certificate of Receipt of Subscription Money issued by a Cost and Management Accountant or Chartered Accountant verifying the fact that subscription money has been deposited in the bank account of the company must be submitted with 45 days of registration of a company
Authorities are committed to make sure that authorized/subscribe capital must be deposited in the bank account of companies which guarantees that the directors of the companies seriously want to run the business. In recent few month corporate sector is growing at very fast pace around one thousand are registered each month. But there are thousands of companies which are non-operating . Beside it thousand of companies have been declared as “Dormant” by Securities Exchange Commission of Pakistan (SECP) on account of non filing of Annual Corporate Return ( Form – A and Form 29) . Last year SECP cancelled registration of around 6000 companies which were dormant. SECP wants to avoid this situation hence newly registered companies are informed by SECP through notices to fulfill their various legal obligations.
To ensure compliance to the provision of the company laws , relating to payment of share subscription money, SECP actively issuing Show Cause Notices to Companies,. Company Registration Office Lahore and Karachi has issued show cause notices to all company which were registered after May 2017, after promulgation of Companies Act,2017.
A Penalty of Rs.25000 can be imposed if a company does not deposit subscription money and submit the certificate to the concerned registrar.