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Minimum authorised Capital for a pvt co to do the business

priyanka (company law consultant) (43 Points)

26 April 2011

Dear All ,

can any body help me what is the minimum authorised capital required to form a pvt ltd. co for doing the business as a commodity broker

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19 Replies

CS Shivi Reddy (COMPANY SECRETARY) (175 Points)
Replied 26 April 2011

Dear Priyanka,

Every Pvt. Ltd. Company to be formed shall have a minimum authorised capital of Rs. 1,00,000

Regards

Shivi

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priyanka (company law consultant) (43 Points)
Replied 26 April 2011

thanks , but i want to know is there any specific authorised capital required for a company to do the business as commodity broker

CS Shivi Reddy (COMPANY SECRETARY) (175 Points)
Replied 26 April 2011

There is no such requirement as specific authorised capital for doing commodity broker business as such.

(Guest)

any pvt ltd company whether it is commodity broker business or manufacturing business.the mauthorised capital is minimum. 100000/-

SkDash (CS (Member) CWA (Final)) (909 Points)
Replied 26 April 2011

Dont agree.

Priyanka- Min paid up capital should be Rs 1 lk and for min Auth Capital, pl follow name availability guideline. Min Auth Capital will depend on the name you will use and it is not depending upon the business you are doing.

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17848 Points)
Replied 26 April 2011

Key words in the Name of a Company	Minimum Authorised Capital Required
Corporation	5 Crores
International, Globe, Global , Universal, Universe, Continental, Inter- Continental, Asiatic, Asia, Asian, World Being the first part of the name	1 Crore
Hindustan, Hindustani, Hindustanee, India, Indian, Bharat, Bharatati, Bharatiya, Bharateeya Being the first word of the name	50 Lacs
If any of the key words as above is used within the name(with or without brackets)	5 Lacs
Industries, Udyog, Industrial, Industry	1 Crore
Enterprises, Enterprise, Products, Product Business, Manufacturing, Manufacture	10 Lacs

CS Shivi Reddy (COMPANY SECRETARY) (175 Points)
Replied 26 April 2011

I think the question was the minimum authorised capital required for a pvt. co. doing commodity broker business.

The name of the Co. to be formed also effects the authorised capital but its a different issue.

Regards

Shivi

priyanka (company law consultant) (43 Points)
Replied 26 April 2011

Thanks for reply,

i will use the word "Commodity " in the name, now can any body please suggest me wat is the minimum authorised capital required

CS Shivi Reddy (COMPANY SECRETARY) (175 Points)
Replied 26 April 2011

den the minimum authorised capital is 1 lacs

Abhijit Rane (COMPANY SECRETARY) (178 Points)
Replied 26 April 2011

Hi Priyanka

Your Minimum authorised Capital shall be Rs. 10,00,000/-

You may still continue with the business with only 1,00,000/- as your paid up capital.

Regards

Abhijit

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SANTOSH SHAH (Company Secretary) (754 Points)
Replied 26 April 2011

Originally posted by : Santosh
	Dont agree. Priyanka- Min paid up capital should be Rs 1 lk and for min Auth Capital, pl follow name availability guideline. Min Auth Capital will depend on the name you will use and it is not depending upon the business you are doing.

Agreed with Santosh view.

Hello Mr. Ankur / Other members

To bring to your kind notice, that as per latest mca update on name availability rules,

following words of company will have the authorised capital as follows :-

S.No	Key Words	Required authorized capital (in Rs.)
1	Corporation, corp, corpn, corp.	25 crore
2	international, Globe, Global, World, Overseas, Universe, Universal, Continent, Continental, InterContinental, Asiatic, Asia, Asian being the first word of the name	5 crore
3	If any of the words at (2) above is used within the name (with or without brackets)	2 crore
4	Hindustan, India, Indo, Indian, Bharat, Bharatvarsh, Bhartiya or any other country’s name being first word of the name	2 crore
5	If any of the words at (4) above is used within the name (with or without brackets)	25 lakh
6	Industries/ Udyog	5 crore
7	Enterprises, Products, Business, Manufacturing, Venture.	50 lakh

Please take note of the same.

regards

Santosh Shah

SkDash (CS (Member) CWA (Final)) (909 Points)
Replied 26 April 2011

One should go for public interest litigation (PIL) challenging the name availability guideline issued by MCA and RoCs are forcing others to keep the Auth Cap as mentioned therein. there is nothing logic behind this guideline and they are only insisting to generate the revenue (stamp duty) upfront at the time of incorporation. Are u with me guys ?

SANTOSH SHAH (Company Secretary) (754 Points)
Replied 26 April 2011

Originally posted by : Santosh
	One should go for public interest litigation (PIL) challenging the name availability guideline issued by MCA and RoCs are forcing others to keep the Auth Cap as mentioned therein. there is nothing logic behind this guideline and they are only insisting to generate the revenue (stamp duty) upfront at the time of incorporation. Are u with me guys ?

Agree to you.

regards

Santosh Shah

Abhijit Rane (COMPANY SECRETARY) (178 Points)
Replied 26 April 2011

As clear from priyankas earlier msg it is quite clear that she wants to use the word commodity in her name. and the word commodity is synonymous to the word product. i think it shuld be 1000000/-. anyways priyanka take the opinion of the concerned ROC. he may guide you better.