Minimum Authorised Share Capital required for Companies in India

For a Private Limited company – INR 100,000
For a Public Limited company – INR 500,000

But you should not assume it as FINAL. There are certain other details that you must know before selecting the name of your company.

In order to use certain prescribed words in the ‘names’, the companies should comply with the provisions stipulated by Ministry of Corporate Affairs with regard to minimum Authorised Share Capital that needs to be fixed at.

Here’s the list of prescribed minimum authorised share capital amount for use of certain words in the name (Amount in INR):

5 lacs – For the words Hindustan, India, Bharat within the name (with or without bracket).

10 lacs – For the words Enterprise, Products, Business and Manufacturing

50 lacs – For the words International, Global, Universal, Continental, Intercontinental, Asiatic, Asia used within the name (with or without bracket).

50 lacs – Hindustan, India, Bharat, being the first word of the name

1 crore – International, Global, Universal, Continental, Intercontinental, Asiatic, Asia as first word, and the word Industry and Udhyog anywhere in the name.

5 crore — The word ‘Corporation’ anywhere in the name.

You can even refer to Circular F. No. 27/1/87 dated 13-3-1989 for further details.

Please also note that depending upon the Authorised Share Capital fixed, the appropriate fee needs to be paid to Registrar of Companies as per the prescribed slab (pls check our blog titled “How to form a company in India?” for slab details).

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This entry was posted on Friday, November 14th, 2008 at 6:54 pm and is filed under Statutory Matters. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

17 Responses to “Minimum Authorised Share Capital required for Companies in India”

  1. h nagpaul says:

    what is minimum authorised capital required for a company like:
    i) Non banking finance company
    ii) Leasing COmpany

    Regards!

  2. admin says:

    Dear Mr. Nagpaul,

    Thanks for writing to Cogzidel !!

    The minimum authorised share capital required for Non-Banking Financial Company and Leasing Company is Rs. 2 Crores.

    Regards
    Cogzidel Team

  3. admin says:

    Formation of a subsidiary company with the name ABC Capitals Ltd – whether any legal requirements in terms of minimum authorised capital,.as CAPITAL word is being used in the name itself.

    Gausiakhan

    ———————-

    Answered by Cogzidel:

    Thanks for writing to Cogzidel.

    There is no minimum authorized capital for using the word “Capital” in the name of the proposed company. Normally, financing companies, stock broking companies use the word “Capital” in the name, and the following applies to those kind of companies:

    If it is going to be a Non-banking Financial company, there is a requirement to maintain a minimum net owned fund of Rs. 2 Crores.

    If it is going to be stock broking company, then SEBI approval is required.

    Regards
    Cogzidel Team

  4. admin says:

    What would be the fees structure to be paid to ROC based on authroized capital?

    Suraj

    ———————
    Answered by Cogzidel:

    Thanks for writing to Cogzidel.

    Please note that depending upon the Authorised Share Capital, the appropriate fee needs to be paid to Registrar of Companies as per the prescribed slab (pls check our following blog link titled “How to form a company in India?” for slab details).

    http://www.cogzidel.in/blog/how-to-form-a-company-in-india/

    Regards
    Cogzidel Team

  5. Indranil says:

    Based on our companies profile in the website.
    What will be the minimum share capital that we need to have for a private limited company .
    your help in this regard will be appreciated.

    rgds
    Indranil

  6. admin says:

    Answered by Cogzidel:

    Dear Mr. Indranil,

    For a Private Limited Company, the minimum authorised share capital is Rs. 1,00,000 (Rupees One Lakh Only).

    Regards
    Cogzidel Team

  7. moti says:

    Dear Sir
    i want to create a new company of arbitrage ..
    name —– capital & finance market Pvt Ltd
    is their have any restriction on minimun authorised capital for the word using capital & finance market

  8. sumit says:

    Hi I making my company pvt ltd, name is tecnoglare and I hope the shared capital required is 1 lakh. But I shall be launching a portal with the domain name xyzindia.in under the ownership of tecnoglare, is there any problem in that?

  9. admin says:

    Dear Mr. Sumit,

    Thanks for writing to Cogzidel.

    Yes, you can have a different name for your company and different name for your portal. There is NO statutory problem. But it is suggested to have both the names similar as it would be convenient for the people who interact with you.

    Regards
    Cogzidel Team

  10. ambulans says:

    Hi, very good web site. Thank you.

  11. That’s why it is better for beginners to learn from those who have walked the path already, not those who have only theoretically walked the path whose knowledge consists of what “should” be.

  12. Arvind Gunput says:

    hello
    For a pvt ltd company when it says Proposed
    Authorised Capital 100,000 does this mean that once
    the company is formed if it needs more money i can
    transfer more money into the company account eg Rs10,00,000
    regards

    Reply from Cogzidel:

    Dear Mr. Arvind,

    INR 1,00,000 is the statutory minimum of Authorised Share Capital. Once the company is formed and if you want to bring in more share capital, then you will have to increase your Authorised Share Capital from the current 1,00,000 to such sum as you want it to be increased to, by filing the appropriate forms and documents with applicable fees to the Ministry of Corporate Affairs.

    Regards
    Cogzidel Team

  13. Prabhav Mishra says:

    what will be minimum invest requried to form a prive Ltd software company ?

    Reply from Cogzidel:

    Minimum prescribed Authorised Share Capital required for a private limited company is Rs. 1,00,000.

    Pls contact us at bala@cogzidel.in for more details.

    Regards
    Cogzidel Team

  14. Priyanka says:

    what will be minimum authorised capital requried to form a prive Ltd for the following?
    1) Software Company
    2) Telecom Services Comapny
    3) Marketing Company

    Reply by Cogzidel:

    Dear Priyanka,

    For incorporating a private limited company, the statutory minimum of authorised share capital is Rs. 1,00,000 (Rupees One Lakh Only). The same applies to the type of companies that you have listed.

    Regards
    Cogzidel Team

  15. Trans Oceanic Manufacturing Company says:

    We require the name as above is possible or not with Rs.100000.00 as authorised capital.

    Reply from Cogzidel:

    Hi,

    Thanks for writing to Cogzidel.

    Yes, the name “Trans Oceanic Manufacturing Company” is available for registration. As far as the authorised share capital is concerned, it can be done with Rs. 10,00,000 as Authorised Share Capital as use of the word “Manufacturing” attracts this provision and the filing fee has to be paid accordingly.

    Regards
    Cogzidel Team

  16. AAYUSH GUPTA says:

    Hi..

    Can a private limited company be incorporated in India without having authorised share capital?

    Thanks.

    Reply from Cogzidel:

    Dear Mr. Aayush,

    Thanks for writing to Cogzidel.

    Incorporation of a private limited company in India requires a minimum authorised share capital of Rs. 1,00,000. For usage of certain words in the name, the authorised share capital needs to be more than Rs. 1,00,000.

    There is NO provision to incorporate a private limited company without having authorised share capital.

    Pls contact us in case you need any advice or help (pls tell us which city you would like to incorporate your company).

    Regards
    Cogzidel Team

  17. K P Sreekumar says:

    Hello Cogzidel,

    Your website is highly useful. Congrats!

    Please let me know what is the Registration fees to be paid to the ROC for a public limited company with authorized capital of Rs.10 Crores. The proposed company to be registered in Kerala is for trading and marketing.

    Reply from Cogzidel:

    Dear Sreekumar,

    Thanks for writing to Cogzidel.

    For a 10 crore authorised share capital of a company to be registered in Kerala, the filing fee payable would be Rs. 6,08,000.

    Regards
    Cogzidel Team

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