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Minimum authorised capital

Others 2004 views 15 replies

Thanks in Advance,

When the objective of private limited compay is "manufacturing" is it necessary to set the minimum authorised capital as Rs. 50 Lakhs ? The word manufacture is absent in the name.

Replies (15)

There is no min authorised captial prescribed by company law.Howver a pvt company should hav min Rs.1,00,000/- and public co. shall hv Rs5,00,000/- Paid up capital and thereby requiring minimum authorised captial to be Rs.100000/- and Rs.500000/- respectively

Perfect answer by Amit

Agree with amit...there is no such separate requirement for a manufacturing company.
 

 

 RG

Originally posted by : Amit Gupta

There is no min authorised captial prescribed by company law.Howver a pvt company should hav min Rs. 1,00,000/- and public co. shall hv Rs5,00,000/- Paid up capital and thereby requiring minimum authorised captial to be Rs. 100000/- and Rs. 500000/- respectively

AGREED 

Agree with Amit... There is no such provision in the Company's Act....

If the name do not contain the name manufacture, no requirement of minimum capital

There is no specific condition for the authorised capital in which a company is incorporated or changing the name without using "Manufacturing" in the name of the company. for a private ltd min Authorised and Paid Up is Rs.1,00,000 and Public Co min A & P up is Rs.5,00,000.

If the company wants to insert the word manufacturing it is necessary to increase the authorise share capital to Rs.10,00,000 whether pub or pvt. you can check it through the link "https://www.mca.gov.in/MCA21/dca/downloadeforms/Section20_21dec2009.pdf".

Agree with Vignesh,  as per the Guidelines for usage of "key words" issued by MCA (the erstwhile DCA) the use of word 'Manufacturing' in the name would necessitate increase in the authorised capital to Rs.10 Lakh.  Further, such name would be allowed only if the company proposes to deal in various business activities or the company is already carrying on various business activities (in the case of change of name).

Views of fellow Members solicited.

 

Sameer C. Patil

Advisor-Corporate Law & Allied Matters

Originally posted by : Amit Gupta

There is no min authorised captial prescribed by company law.Howver a pvt company should hav min Rs. 1,00,000/- and public co. shall hv Rs5,00,000/- Paid up capital and thereby requiring minimum authorised captial to be Rs. 100000/- and Rs. 500000/- respectively

Wel explained by Vignesh.....Agreed with.

 

It is good  explained by Vignesh

Thanks

I Agree with Sameer

There is nothing specific mentioned abt manufacturing company,nothing also mentioned abt mini authorised capital..

For private company,there must be minimum Rs.100000,PAID UP CAPITAL 

For public company ,there must be minimum Rs.500000,PAID UP CAPITAL.

AS PER COMPANIES ACT,

Originally posted by : Amit Gupta

There is no min authorised captial prescribed by company law.Howver a pvt company should hav min Rs. 1,00,000/- and public co. shall hv Rs5,00,000/- Paid up capital and thereby requiring minimum authorised captial to be Rs. 100000/- and Rs. 500000/- respectively


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