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New minimum paid-up capital under companies act.
New minimum paid-up capital under companies act.
Hey guys do any of you people wish to incorporate a new company. I know you are thinking about it. Do you know how minimum paid up capital you need to invest before registering the same. You must be thinking for a private company it is Rs. 1,00,000 and for a public company it is Rs. 5,00,000. Right ??? Here is the fun fact you are wrong. If you still know the above limit then you are not updated.
Here on thakurani, that’s what we do. We update you with the surroundings of a business and any recent changes that have occurred. Now coming back to the issue of paid up capital.
The LOK SABHA on 17th day of December 2014 passed the Companies (Amendment) Bill, 2014, after Corporate Affairs Minister Arun Jaitley told the house that some of the original provisions were only posing hurdles to doing business in the country. The Companies (Amendment) Bill received the assent of the President on the 25th May, 2015 and published in official Gazette of India on 26th May, 2015.
Among other things the following amendment was passed.
The minimum paid-up share capital requirement of INR 100,000 (in case of a private company) and INR 500,000 (in case of a public company) under CA 2013 has been done away with. Consequently, the definitions of private and public companies stand amended.
So next time when you think about forming a company for yourself and your CA tells you that you have to invest Rs. 1,00,000/5,00,000. You tell him that “ Sir now i can register a company with a bare minimum amount of Rs. 10,000 or less and i would request you to be updated.”
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