Face value of shares in pvt. ltd company

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Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2014 What should be the minimum value of Private Limited company under Companies Act 2013? Can I issue 1,00,00,000 shares to me and other co-founder of company on paid up equity of Rs. 1 lack in Pvt. Ltd Company? In this case, Face value of one share will be Rs. 0.01 each. Is this possible under Companies act 2013?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 January 2014 there no minimum face value provision under the act.

However, under SEBI ICDR guidelines, minimum face value rules are provided for for public issues. Refer Clause 31(1)

Querist : Anonymous

Querist : Anonymous (Querist)

08 January 2014 Thank You very much! Please note that I asked this question because in Companies Act 2013, it says "Shares can't be issued on discounted price". Does this mean I can't issue a share at the rate of Rs. 0.01 each while forming a pvt. ltd company?

I have few more questions. Hope you can answer them.

1) Can I authorise and issue convertible preference shares at the price of Rs. 2000 each on 7% interest in Pvt. Ltd. Company under Companies Act 2013?

2) Can I issue common shares on Premium in pvt. ltd company under Companies Act 2013?

Thanks again!

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