Even after the company being stricken off on account of filing Form-24, the liabilities of the Designated Partners exist for a further period of 2 years. In case any liability arises in this period of 2 years, Designated Partners are liable to pay the same.
Paid-up capital of a company is the amount for which the company has issued shares to its shareholders for the equity capital they have invested in the company (at book value). This has to be less than or equal to the authorized share capital of the company.
Share transfer is the transfer of share from an existing shareholder to the investor. The money, in this case, goes to the shareholders selling their shares. They will need to pay the applicable income tax. In the case of Rights issue or Private placement of shares, fresh shares are issued by the company in lieu of the investment amount.
In case the company is using the private placement of shares method to raise capital, a separate bank account should be used to receive the investment. In case the company issues shares via Rights issue, the investment can come to the company’s primary bank account.
Share Certificates are issued to the shareholders by the company after paying the requisite stamp duty. In case the paid-up capital of the company is less than Rs 50 lakhs, it is signed by the Directors of the company and for the cases where the paid-up capital is more than Rs 50 lakhs, a Company Secretary (on the payroll of the company) needs to sign it.
Stamp duty for Share Certificates varies from state to state. However, in majority of the states, the stamp duty is 1% of the investment amount.
Yes, the investor can use his Indian account to invest in the company as long as the source of that income lies in India. In case the amount is not earned in India, he will need to transfer the funds from his foreign account in foreign currency. In this scenario, the company has to report this to RBI through FC-GPR.
If an employee leaves the organisation or happens to retire before the designated vesting period. In that case, a company is required to buy back the ESOP within 60 days at a fair market value.
When an employer offers ESOPs, they remain in a trust fund for a particular period. This period is called the vesting period.