Can the promoters bring in Rs.2 crore (40% of the minimum paid up capital) towards initial capital and the balance of Rs.3 crore through public issue before starting the LAB?

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Can the promoters bring in Rs.2 crore (40% of the minimum paid up capital) towards initial capital and the balance of Rs.3 crore through public issue before starting the LAB?

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No. The promoters have to bring in the entire minimum capital of Rs.5 crore upfront out of their verifiable own sources of funds. This is a mandatory requirement. The promoters have to submit their latest net worth statements duly verified / certified by a Chartered Accountant.The promoters are required to submit documentary evidence along with Auditors certificate in support of having mobilized the minimum initial capital of Rs.5 crore before issue of licence to the LAB.

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