Question

Minimum paid-up capital for a private company is _________.

• A. Rs 12 lakhs
• B. Rs 1 lakh
• C. Rs 5 lakhs
• D. Such amount as may be prescribed

Answer 1

The correct option is D Such amount as may be prescribed

The Companies Act, 2013 defied a Private Limited Company as a private company means a company having a minimum paid-up share capital of one lakh rupees or such higher paid-up share capital as may be prescribed. this effectively meant that every private limited company in India must have a minimum paid-up capital (invested funds) of one lakh rupees irrespective of the authorized capital.