Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
No minimum paid-up capital
Contrary to a common belief, a Private Limited company has no minimum paid-up capital — the ₹1 lakh requirement was abolished. You can incorporate with a nominal amount such as ₹10,000 of paid-up capital, paid in by the shareholders after incorporation.
Authorised vs paid-up
You do declare an authorised capital — the ceiling up to which you can issue shares — commonly ₹1 lakh or ₹10 lakh. Stamp duty (which varies by state) is charged on this, so a modest authorised capital keeps incorporation cheaper, and you can raise it later when you actually issue more shares. Confirm current stamp-duty rules for your state.
A worked example
Example: two founders incorporate with ₹1 lakh authorised and ₹10,000 paid-up (1,000 shares of ₹10). That is perfectly valid — they pay the ₹10,000 into the company account after incorporation. When they later raise funds, they increase the authorised capital and issue more shares. There is no need to lock up large capital at the start. Our team can structure the capital sensibly.