Minimum authorised share capital

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P.karthik (Querist)
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01 March 2013 Dear Experts,

What is the minimum Authorized Share capital required. under the Co. Act, 1956 for a new Private Limited company (to be incorporated) starting with the word Globe / Global?

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Ajay Mishra

Ajay Mishra (Expert)
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01 March 2013 Hi

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.

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

Definition of Private Company given in section 3(1)(iii) defines minimum paid up capital requirement.

Definition of Public Company given in section 3(1)(iv) give minimum paid up capital requirement.

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.

P.karthik

P.karthik (Querist)
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01 March 2013 Dear Sir

As per Companies (Name Availability) Rules, 2011, Require Authorised Share capital if the proposed name of the Co.contains international, Globe, Global, World, Overseas, Universe, Universal, Continent, Continental, InterContinental, Asiatic, Asia,Asian being the first word of the name - 5 Crore

Kindly clarify

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