What is paid up capital

    Posted By : Vikash / Published on : 26-Sep-2017 10:43 AM / View : 589 / Comment : 4
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    What is the concept of paid up capital and why pvt. Company and public company have compulsory for minimum capital and why most of.companies paid capital is more than 5 cr if the company less show its paid up capital less then 5cr then no cs is appointed
    Read more on : capital paid

    • In my view, Paid up Capital is the Excess of Net Assets over Outside Liabilities. And as per the Companies Act, It is that part of Issued capital which is subscribed by Stakeholders, Called up by Company and then Paid by those Stakeholders.

      Paid up Capital enhances the Company's strengths and also increases it's Working Capital. Further, more Paid up Capital helps the company in organising funds from the Market easily and minimises the risks to Creditors.

      If paid up capital exceeds Rupees Five Crore in Private Limited Company, then it is mandatory to appoint a Company Secretary (with a view to avoid Non-Compliance under the Act).

      26-09-2017 / 03:21:14 PM
      Reply
    • Dear Sir,

      As per Companies Amendment Act, 2015

      • No Minimum Paid-up Share Capital: The minimum paid-up share capital requirement of INR 100,000 (in case of a private company) and INR 500,000 (in case of a public company) under CA 2013 has been done away with. 

        Accordingly, no minimum paid-up capital requirements will now apply for incorporating private as well as public companies in India.

      AS FOR COMPANY SECRETARY APPOINTMENT :

      FOLLOWING COMPANIES ARE REQUIRED TO APPOINT COMPANY SECRETARY IN FULL TIME EMPLOYMENT  COMPULSORILY:


      1. all listed companies( Rule 8 companies appointment

      27-09-2017 / 08:00:13 AM
      Reply
      • FOR COMPANY SECRETARY APPOINTMENT :

        FOLLOWING COMPANIES ARE REQUIRED TO APPOINT COMPANY SECRETARY IN FULL TIME EMPLOYMENT  COMPULSORILY:


        1. all listed companies( Rule 8 companies appointment

        27-09-2017 / 08:02:16 AM
        Reply
        • AS FOR COMPANY SECRETARY APPOINTMENT :
          FOLLOWING COMPANIES ARE REQUIRED TO APPOINT COMPANY SECRETARY IN FULL TIME EMPLOYMENT  COMPULSORILY:

          1. all listed companies( Rule 8 companies appointment and remuneration of Managerial Personnel Rules 2014)
          2. every public company having paid up share capital of Rs. 10 Cr. or More (Rule 8)
          3. every other company having paid up share capital of Rs. 5 Cr. or More ((Rule 8A)
          Therefore every company which has a paid up share capital of Rs 5 Cr. or more is compulsorily required to appoint whole time company secretary.
          27-09-2017 / 08:05:55 AM
          Reply



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