Minimum Capital in case of Private Co.

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C.A. Pulkit Garg

C.A. Pulkit Garg (Querist)
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28 May 2016 Dear Sir, Can a private company be incorporated even with a nominal share capital of Re.1

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 May 2016 For Private limited companies minimum share capital requirement is Rs.1 lakh

C.A. Pulkit Garg

C.A. Pulkit Garg (Querist)
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29 May 2016 I think it was amended by companies amendment act 2015

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 May 2016 No such amendments my view

CA ABHAY GUPTA

CA ABHAY GUPTA (Expert)
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29 May 2016 Requirement of Minimum Paid up Share Capital
[Section 2(68) and Section 2(71)]
The requirement of having a minimum paid up share
capital by a company has been done away with.
Hence, going forward, a private or a public company
can be incorporated without the need for minimum
paid up share capital of one lakh or five lakh rupees,
respectively.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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29 May 2016 Thanks Mr.Abhy Gupta for updating and correction

CA Rohit Jain

CA Rohit Jain (Expert)
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30 May 2016 no minimum capital requirements for private Ltd company

Jatin Bajaj

Jatin Bajaj (Expert)
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31 May 2016 No minimum paid up capital is required for Private as well as Public Company but for better practice it is better to start with some nominal amount of paid up capital

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