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Authorised Share Capital

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This query is : Resolved

alpesh (Querist)
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31 December 2009 Hello
How & Who decide about Authorised Share Capital , & on what basis amount decide. if Co want to increase the same on which fanancial factor to be conditionred

Please explain me
Thanks

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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31 December 2009 Authorised capital is decided by the promoters of the company. However for doing any particular work for which a minimum Authorised capital is given, you need to take that figure in mind.

For a private limited - Min.1 Lakh (Auth. & paid up)
For a Public Limited - Min. 5 Lakh (Authorised & paidup)
For a NBFC - Min Rs. 2 Crore (Auth. & Paidup)

Aditya Maheshwari

Aditya Maheshwari (Expert)
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31 December 2009 The same can be based on the estimated working capital to be deployed in the company to be funded by the promoters of the company as permanent capital

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