Need opinions on starting a new software firm

Pvt ltd 597 views 2 replies

Dhanshri J

None

24 Points Posted on 13 August 2011

Hi,

I am planning to start a small software firm very soon. Regarding this, I had few questions where I need your expert opinions. If you could let me know following:

1. I've come to know that to start a Pvt. Ltd. firm, one needs to have minimum of Rs. 1 Lac of capital to show. Is it mandatory as such or we need not...If we need to, where we need to specify it or how to prove that we have this much capital?

2. Also, the firm I am planning to start is to be run by myself with one my friend where she'll be taking care of technical responsibilities and me taking care of administrative part. So initially, we two only be employees of the company. Can I be the director of a company and emplaoyee at the same time? If we want to do so, what we need to do?

3. I also read the rule as, there has to be minimum of two directors while formtion of incorporation. Here in our case, as I am taking care of money part to start with, I would like to be whole single owner of the company...Is it possible to do such?

Also, if you could point me to some further useful information if available, it would be great.

Thanks in advance,

Dhanshri...

Replies (2)

GURMUKH

81 Points Posted on 13 August 2011

Here is reply to your queries

1. To start a Pvt Limited Company it is required to have minimum paid up capital of Rs 1 lac. That means that u have to invest Rs 1 lac as Share Capital into the Company initially. As u take Shares of Rs 1 lac this can be party kept in Bank in Company account & partly as cash in hand. It is proved as u take Shares for Rs 1 lac in company.

2. You book can be executive Directors in the Company. Executive/whole time directors are employees of the Company & can take salary from the Company.

3.There is the minimum requirement of two Directors & two Shareholders. The Owners of the Company are its Shareholders. You can keep 99% holding with you. Infact u can give only one Share to the other Shareholder only to fulfill legal requirement.

Hope my reply satisfy ur query.

Gautam

38 Points Posted on 16 August 2011

is it possible that d directors can bring in assets instead of cash n get shares in return to fullfill the 1 lak reqirement, for a company to be newly incorporated