Question

Minimum paid-up capital for a private company is __________ as per Companies Act, 2013.

• A. Rs Two lakh
• B. Rs One lakh
• C. Rs Five lakh
• D. Rs Ten lakh

Answer 1

The correct option is B Rs One lakh

The Companies Act, 2013 earlier mandated that all Private Limited Companies have a minimum paid up capital of Rs.1 lakh. This meant that Rs.1 lakh worth of money had to be invested inthe company by purchase of the company shares by the shareholders to start business.