Home |Company Registration | We initially incorporated company for 10 Lakhs and deposited check of 2 Lakhs as commencement capital and started business. Can we modify the commencement capital from 10 lakhs to 2lakhs. What forms need to be submitted for change of capital then file form 20 a to be complaint? We made 20 lakhs from business so far

We initially incorporated company for 10 Lakhs and deposited check of 2 Lakhs as commencement capital and started business. Can we modify the commencement capital from 10 lakhs to 2lakhs. What forms need to be submitted for change of capital then file form 20 a to be complaint? We made 20 lakhs from business so far

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Anjali Bansal Anjali Bansal, Practicing Company Secretary verified
Answered on September 25,2021

Yes, the share capital can be reduced from 10 lacs to 2 lacs. 

However, can you let me know, if 10 lacs was both authorised and subscribed amount and instead of 10 lacs you had deposited only 2 lacs in companies account and commenced the business. 

Or, 

10 lacs is the authorised capital and out of which you have subscribed for shares worth only 2 lacs and commenced the business.

The process for reduction of share capital will be different for both the cases. 

 Please write to me at anjalibansalcs@gmail.com

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Form INC 20A : Declaration of Commencement of Business

Form INC 20A: Declaration for the Commencement of Business is the declaration that the Director of the Company needs to file with the Registrar of Companies. This declaration is filed in For..
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