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What is an Authorized Capital? What is the minimum authorized capital for registering my company?

While registering a Private Limited Company, your firm promoters are to decide the amount of authorised capital and the share value they get in return as they invest in your Company.

The highest end limit of the capital given to a Company that can issue shares and collect money from its shareholders is said as an Authorised Capital or Registered Capital. The authorised capital are approved through the resolution given in a meeting of the shareholders.

The least Authorised Capital of a Private Limited Company required is Rs. 1 lakh for which the Ministry of Corporate Affairs charges Rs 5,000/- as fee for allotting this minimum authorised capital.

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