Company incorporation

This query is : Resolved

Guest

Guest (Querist)

19 August 2013 Dear experts

please tell me

1. minimum Authorized capital to incorporate Pvt co and Public co.

2. minimum paid up capital to incorporate Pvt co and Public co.

can we have Authorized capital Rs 1 lac and paid up capital Rs. 85k in case of Pvt co incorporation.

Ajay Mishra

Ajay Mishra (Expert)
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19 August 2013 This clause is required to state the authorised or nominal capital with which the company having a share capital is to be registered and the division thereof into shares of a fix amount. This capital is variously described as 'registered', 'authorised' and 'nominal' capital. In this connection the authorised capital should not be less than the minimum paid-up capital required Rs. 5,00,000 for public company and Rs. 1,00,000 for private limited company.
In case of an unlimited company, the liability of the members towards the outsiders is unlimited in the event of winding up of the company, while it remains limited to the value at which the shares are subscribed by them and remain unpaid, so long as the company is a going concern. However, the same should be specifically stated in the Memorandum. The requirement of section 13(4)(a) is not mandatory in such case.

Ajay Mishra

Ajay Mishra (Expert)
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19 August 2013 Requirements of minimum paid-up capital

Every private company requires minimum paid up capital of Rs. 1 lakh and public company requires minimum paid up capital of Rs. 5 lakhs. Now new company cannot be registered which is having less than the minimum paid-up capital required However, as per section 3(6) no criteria for minimum paid up capital is applicable for the Companies registered under the provisions of section 25 of the Act. It is not stated in this provision when the new companies should issue the minimum shares after incorporation and make them paid-up to the extent required under the law. However the promoters shall undertake to subscribe in the Memorandum and Articles, the minimum amount of capital as required and should allot the same at the first Board meeting of the company.

Guest

Guest (Querist)

21 August 2013 tOTALLy OBLIGED sIR

tHANKS

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