Minimum paid up capital

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 June 2013 We are starting a pvt ltd company with authorised capital of 1 lakh.

Since minimum paid up capital should be Rs.1Lakh.

is it compulsory to subscribe complete 1 lakh capital during incorporation itself?

Or

We can subscribe for Rs.50,000 now & Rs.50,000/- afterwards?

Ajay Mishra

Ajay Mishra (Expert)
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19 June 2013 Hi

Yes, it is mandatory to subscribe minimum 1 lakh as subscribed capital.

Ajay Mishra

Ajay Mishra (Expert)
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19 June 2013
In accordance with the provisions of section 36(2) of the Companies Act, 1956, all money payable by any member to the company under the MOA or AOA shall be debt due from him to the company. Further, a subscriber to the memorandum must pay for his shares in cash even if the promoters have promised him the shares for services rendered in connection with the promotion of the company.