Chartered Accountant · ICAI M.No. 153926 · FRN 136869W · Reviewed on 7 October 2026
The law since 2015
Until May 2015, section 2(68) of the Companies Act, 2013 prescribed ₹1 lakh minimum paid-up capital for a private company. The 2015 amendment removed it entirely. Any figure you still see quoted as a “legal minimum” is nine years out of date. Shares must simply have a face value (commonly ₹10) and at least two subscribers must take at least one share each.
What you actually decide at incorporation
Authorised capital — the ceiling you can issue up to — is usually set at ₹1 lakh for a lean start, since government fees and state stamp duty rise with it. You can raise it later by ordinary resolution and Form SH-7. Paid-up capital is what subscribers actually bring in; it must reach the company’s bank account before the directors file the INC-20A commencement declaration, due within 180 days of incorporation (section 10A) — miss it and the company cannot commence business or borrow.
When a token capital is a mistake
A ₹10,000 company is legal but not always practical: banks and landlords read the balance sheet, government tenders prescribe net-worth floors, and a company burning founder loans instead of capital builds a messy structure for later investors. Decide capital with the twelve-month cash plan, not the legal minimum. Our Pvt Ltd incorporation service covers the capital structure call alongside the filings.