Minimum capital requirement

Save Share

This query is : Resolved

NEERAJ SAGAR (Querist)
Follow

04 December 2012 Hi,
Can anyone please let me know is there any minimum capital requirement in case of Power/Energy Company. If So please tell the section or rules relating to it.

Thanks n Regards

CA bhargava

CA bhargava (Expert)
Follow

04 December 2012 Mr Neeraj., as far as i am concerned., according to companies Act., there is a min requirent of Share capital for Incorporating a company., and Companies act doesnt have any provisions relatind to specific Power or enrgy company..

wait for expert advices...

Message likes : 1 times

Rasesh

Rasesh (Expert)
Follow

04 December 2012 The answer depends on whether it is power generation or distribution company. Then whether power is generated out of new and renewable energy or otherwise.

Example: For power distribution companies, the Ministry of Power has kept a requirement of 30% equity on cost of investment - as a basic licence requirement.

Message likes : 1 times

NEERAJ SAGAR

NEERAJ SAGAR (Querist)
Follow

04 December 2012 Companies Act specifies only Name related capital requirement. Ex India as 1st name is Rs.5 Crs. But it doesn't specify anything relating to power generation Company. Otherwise any other Act is applicable for such Company?
Kindly Advise

Ajay Mishra

Ajay Mishra (Expert)
Follow

05 December 2012 Hi

No need of capital requirement. If you are making private company minimum capital should be 1 lac and for public company, minimum capital is 5 lac.

The capital requierment is applicable only for financing company.

Message likes : 2 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now