18 March 2017
The definition of “private company” and “public company” under Section 2 of the Companies Act, 2013 earlier provided for a requirement of having a minimum paid-up share capital of one lakh rupees and five lakh rupees, respectively. The Companies (Amendment) Act, 2015 omits requirements for such minimum paid up share capital.
18 March 2017
Amendments and clarifications in the CA Amendment 2015 includes -
The minimum paid-up share capital requirement of INR 100,000 (in case of a private company) and INR 500,000 (in case of a public company) under CA 2013 has been done away with. Consequently, the definitions of private and public companies stand amended.
Accordingly, no minimum paid-up capital requirements will now apply for incorporating private as well as public companies in India.
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