Is there a minimum share face value for Indian Private limited company?
Hi, So far as your question is concered that whether is there a minimum share face value for Indian Private limited company? Then the answer to it is No. There is no such requirement. Kindly note the following: As far as Companies Act 2013 and Rules framed there under is concerned, both are silent with regard to the minimum and maximum face value or par value of each share. However, currently SEBI requires companies who want to list on BSE to have minimum Re. 1 as minimum face value or par value of each share. Therefore, it is possible that a private limited company can start its business with minimum face value of each share as Rs. 0.01 (i.e. 1 paisa), Lets take an example: authorized share capital is Rs. 1 lac. Thus a newly registered 1-paisa company would have 1 crore shareholder. In contrast to 1 lacs share holders possible with minimum face value of Rs. 1 each. Kindly note earlier there was a requirement of minimum share capital of Rs. 1 lac which has been removed by amendment to Co Act 2013. To conclude There is no minimum share face value for Indian Private limited company. Regards,
Dear Adhya, As per the provision of companies act 2013 read with amended companies act 2015, their is no mandatory requirement of a minimum share face value of the share of the company. so its company choice which face value is retained by the company. as per the current and working style of the company the minimum share face value of the share of the company is 10 rs. per share. So in nut sell, there is no legal requirement of the law. Any other query fell free to contact us. Writer CA Chitranjan Agarwal