Law
This query is : Resolved
15 July 2011
Respected Sir ,
My question is that which is the major benefit which private limited co enjoys in comparison to public ltd co. and is there any qualification for being a director in case of public limited compnay ??
My question is that which is the major benefit which private limited co enjoys in comparison to public ltd co. and is there any qualification for being a director in case of public limited compnay ??
15 July 2011
There is no qualification to become a director of the company. The only qualification is that you must have money to invest in the company and become director.
There is no advantage. The law is strict for Limited companies which are listed in the stock exchanges. Otherwise there is no benefit all the laws are applicable to Limited and Private Limited Companies subject to number of shareholder and number of directors and that of registration procedure.
There is no advantage. The law is strict for Limited companies which are listed in the stock exchanges. Otherwise there is no benefit all the laws are applicable to Limited and Private Limited Companies subject to number of shareholder and number of directors and that of registration procedure.
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21 July 2011
Good Morning Sir ,
Can you pls tell me how much share capital i must have to form private company and public company ??
Thank YOU
Can you pls tell me how much share capital i must have to form private company and public company ??
Thank YOU
02 August 2024
The requirements for share capital in forming a private limited company and a public limited company differ based on the regulations under the Companies Act, 2013 in India. Here’s a breakdown of the requirements:
### **1. Private Limited Company**
- **Minimum Share Capital:**
- There is no prescribed minimum capital requirement for private limited companies under the Companies Act, 2013. The minimum paid-up capital requirement of Rs. 1 lakh, which was applicable under the Companies Act, 1956, has been removed under the new Act.
- Practically, companies often start with a nominal amount, such as Rs. 1 lakh or Rs. 2 lakhs, but it can be lower or higher based on the company's requirements.
### **2. Public Limited Company**
- **Minimum Share Capital:**
- For a public limited company, the minimum paid-up capital requirement is Rs. 5 lakhs. This requirement is specified under the Companies Act, 2013.
- This capital must be raised before the company can commence business activities.
### **Additional Considerations**
- **Authorized Share Capital:**
- This is the total amount of capital that a company is authorized to issue to shareholders as per its Memorandum of Association (MOA). The authorized capital can be more than the minimum requirement and can be altered later based on the company’s needs.
- **Paid-Up Share Capital:**
- This is the portion of the authorized capital that has been issued and fully paid by the shareholders. It must meet the minimum capital requirement as prescribed for public companies.
### **Summary**
- **Private Limited Company:** No minimum capital requirement.
- **Public Limited Company:** Minimum paid-up capital of Rs. 5 lakhs.
Ensure you consult with a legal professional or company secretary to align with the latest legal requirements and company formation norms.
### **1. Private Limited Company**
- **Minimum Share Capital:**
- There is no prescribed minimum capital requirement for private limited companies under the Companies Act, 2013. The minimum paid-up capital requirement of Rs. 1 lakh, which was applicable under the Companies Act, 1956, has been removed under the new Act.
- Practically, companies often start with a nominal amount, such as Rs. 1 lakh or Rs. 2 lakhs, but it can be lower or higher based on the company's requirements.
### **2. Public Limited Company**
- **Minimum Share Capital:**
- For a public limited company, the minimum paid-up capital requirement is Rs. 5 lakhs. This requirement is specified under the Companies Act, 2013.
- This capital must be raised before the company can commence business activities.
### **Additional Considerations**
- **Authorized Share Capital:**
- This is the total amount of capital that a company is authorized to issue to shareholders as per its Memorandum of Association (MOA). The authorized capital can be more than the minimum requirement and can be altered later based on the company’s needs.
- **Paid-Up Share Capital:**
- This is the portion of the authorized capital that has been issued and fully paid by the shareholders. It must meet the minimum capital requirement as prescribed for public companies.
### **Summary**
- **Private Limited Company:** No minimum capital requirement.
- **Public Limited Company:** Minimum paid-up capital of Rs. 5 lakhs.
Ensure you consult with a legal professional or company secretary to align with the latest legal requirements and company formation norms.
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