Aug. 15 – In India, the Companies Act of 1956 made rules and regulations for the establishment of both public and private organizations. The most widely used business form is the limited company, unlimited companies being comparatively rare. An organization is formed by registering the Memorandum and Articles of Association with the State Registrar of Companies of the state in which the head office is to be positioned.
Authorized capital is the worth of shares which entities are allowed to issue. If entity’s authorized capital is Rs. 1 lakh, you can issue shares of upto Rs. 100,000. These can be 10,000 shares of Rs. 10 each, 1,000 shares of Rs. 100 each or any other value which entity has decided. The regulation stipulates that the authorized capital has to be at least Rs. 100,000 for a Private Limited Company in India today. Anything more than Rs. 1 lakh and the Stamp Duty which an entity has to pay to incorporate a company increases. An entity has to pay this at the time of incorporation itself.
Even with an Authorized Capital of Rs. 100,000, an entity can invest a lot of capital in your computers, technology, salaries and other expenses.
If an investor wants to come into a Company with an investment of Rs. 10 million, it does not mean that an entity cannot set up a company. An entity can raise the authorized capital, or sell a stake (say 10 percent) at a higher valuation per share.
Fees for registration of Memorandum of Association (MOA) of new companies in terms of authorized capital
However, it is important to note that for every additional authorized share capital of Rs. 1 crore, Rs. 50,000 need to added.
In the table below, it shows fees levied in terms of number of members as stated in the Article of Association.
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Pls advice that can we form a private limited company in India(Lucknow) having businesses related to infrastructure , aviation , event management, education and prof training institutes , hotel and resort business under one name.
If ni why and what is the way out to take on all these activities.
If yes then what should be the ideal authorised capital and paid up capital for smooth operations .
What clause we need to have to make our business PAN india , ASIA & Middle east etc.
Who can be contacted personally thru phone or mobile to take some advice on this from your side.
Best regrards
Shall be highly grateful.