BooksIQCompanies generally CANNOT accept deposits from the public. A private company may accept deposits from its MEMBERS (within limits) and from DIRECTORS (on a declaration that the money is not borrowed). Only ELIGIBLE public companies (net worth ≥ ₹100 cr or turnover ≥ ₹500 cr, with a special resolution) may accept public deposits. An annual return in FORM DPT-3 is due by 30 June.
Key points
- §73 PROHIBITS a company from inviting/accepting DEPOSITS from the PUBLIC except as permitted.
- A company (including a private company) may accept deposits from its MEMBERS by resolution, subject to limits under the Deposit Rules (generally up to 35% of paid-up capital + free reserves + securities premium;
- certain private companies have relaxed/100% limits).
- Money received from a DIRECTOR is NOT a deposit if accompanied by a written DECLARATION that it is not given out of borrowed funds.
- Only an ELIGIBLE PUBLIC COMPANY — net worth ≥ ₹100 crore OR turnover ≥ ₹500 crore — may, with a SPECIAL RESOLUTION filed with the Registrar, accept deposits from the PUBLIC (§76).
- Conditions include credit rating, a DEPOSIT REPAYMENT RESERVE of at least 20% of deposits maturing next year, deposit insurance/trustees, and a circular/advertisement.
- Every company having outstanding receipts of money or loans (whether or not treated as deposits) files an annual return in FORM DPT-3 by 30 JUNE.
Reference: §§73-76 Companies Act 2013 read with Deposit Rules 2014
This page is general information for Indian businesses, current as of the
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