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I am the founder and director of a private limited company that is 8 months old. As such the startup has not generated revenue reason being we are still working on the product development front. To raise an additional capital, I am planning to accept investments from 4 investors who are my friends too. The amount that they look to invest is INR 3L-5L per person, in exchange for shares in the company. I would like to understand the legal procedures involved in recording such investments and relevant things to note and execute.

Under Companies Act 2013 the loan from the member of the company is accepted. But, there is one catch, that is a private limited company can accept deposits from its members up to 100% of its paid-up capital and Free Reserves & Securities Premium account provided it files with the Registrar information about such acceptance.

Procedure to ...


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