What is the minimum capital for a Private Limited company?

⚡ Short answerThere is no minimum paid-up capital requirement for a Private Limited company in India — the Companies (Amendment) Act 2015 removed the old ₹1 lakh rule. You can incorporate with as little as ₹1 of paid-up capital. Most founders choose ₹1 lakh authorised capital and a smaller paid-up amount for practical reasons.

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Authorised vs paid-up capital

Authorised capital is the maximum shares the company can issue; paid-up is what shareholders actually contribute. You can keep authorised capital low (e.g. ₹1 lakh) and increase it later as you raise funds.

Practical guidance

While ₹1 is legally allowed, founders usually start with ₹1 lakh authorised and ₹10,000–₹1,00,000 paid-up to look credible to banks and investors. Stamp duty on incorporation depends partly on authorised capital and the state.

Related questions

Can I start a company with no money?

Legally yes — there is no minimum capital. But you need some paid-up capital for a bank account and operations. ₹10,000–₹1,00,000 paid-up is common for early-stage startups.

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General information for AY 2026-27, not professional advice. Rules change with each Finance Act / notification and depend on your facts — verify with a licensed CA or advocate before acting.