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Is there a minimum share face value for Indian Private limited company?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 aliya bhat asked over 3 years ago

Is there a minimum share face value for Indian Private limited company?

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2 Answers
Open uri20170510 32134 1ue0f38?1494421710 rohit agarwal answered over 3 years ago

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,

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 CHITRANJAN AGARWAL answered over 3 years ago

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

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