Authorised capital

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Praveen Kumar K (Querist)
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08 November 2011 1.Sir a private limited company has to be incorporated.
2.The total investment amounts to Rs 4 crore. The bank funding will be 2crores.
3.The balance 2 crores will be contributed by the promoters.
4.How much minimum should be the Authorised and subscribed capital.
5.After the capital portion and bank loan portion how should the balance funding be shown as.

RG - A Helping Hand

RG - A Helping Hand (Expert)
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09 November 2011 Kindly check the link below for incorporation procedure:

https://www.caclubindia.com/articles/procedures-for-incorporation-and-registration-of-companies-2984.asp

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RG - A Helping Hand

RG - A Helping Hand (Expert)
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09 November 2011
I suppose Rs. 2 crore bank funding will be treated as secured debt.

Balance Rs. 2 crore will be contributed by promoters through equity participation for which you have to allot equity shares of value of Rs. 2 crore. In this case your paid up capital will be Rs. 2 crore.

Authorised capital can not be less then paid up capital of the company.

So your minimum authorised capital will be Rs. 2 Crore.

RG

Praveen Kumar K

Praveen Kumar K (Querist)
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11 November 2011 1.Sir if the authorised capital is kept as Rs 2crores, the ROC fees will be higher.
2. So cant we show Rs 10,00,000.00 as Authorised and paid up capital and balance 50,00,000.00 as loan from members and directors.

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