How to Reduce Authorised & Paid Capital of a Pvt Ltd Company

Dear Ritesh,

The company cann't reduce its authorized capital but it can reduce paid up capital by following procedure laid down and filing petition with high court of concern state and it will take 6 to 9 months time, i advise you to consult company secretary/Advocate for same.

Thanks  Prakash,

For Reduction of Paid Up Company can go for Buy Back ?

I Think Company buy back his 25% of paid Up in a Single Financial Year ? is it valid & applicable ?

Reduction of authorised capital is not possible.  Companies Act pr

ovides for following ways of reducing paid up capital:

a) Reduction of capital u/s 100 of CA 1956 with approval of High Court

b) Scheme of arrangement u/s 391-394 of CA 1956 with approval of High Court

c) Buy back of shares u/s 67 of CA 2013