Roc fee for authorised capital

This query is : Resolved

SIDDA NAVEEN (Querist)
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19 January 2013 Dear sir,

please clarify the following,

we want to float a company with the authorized capital of Rs.200 crores.but roc registration fee is about 0.5% which is very huge,

hence we thought that to register with Rs.100,000 as authorised capital and remaing as securities premium

Entry: cash a/c dr 200 crores
To Equity share capital 100000
To securities premium 1999900000

can we pass the entry like this,
is there any restriction to create securities premium.

is there any restriction as a % of capital for creation of securities premium

can the securities premium be utilized for aquisition of land or any other asset.

Ajay Mishra

Ajay Mishra (Expert)
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20 January 2013 Hi

At the time of registration Authorized capital is capital up to which company is authorised to issue capital.

Securities premium is not a part of paid up capital and it is covered under free reserve and surplus.

SIDDA NAVEEN

SIDDA NAVEEN (Querist)
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23 January 2013 Thank you sir,

sir is there any restriction as a % of capital for creation of securities premium.