Monday, January 11

Companies Act 2013 - Capital required for formation of company

In its drive to improve the ease of doing business, The Companies (Amendment) Act 2015 has made some sweeping changes.

One of such change is the omission of minimum capital requirement for starting a business in company form.

The requirement of having a minimum paid up share capital has been done away with. Going forward, a Private Company would not be required to have a paid up share capital of Rs 1 Lakh. Accordingly, a Public Company would not be required to have a paid up share capital of Rs 5 Lakh.


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