Me and two friends want to start a private limited company in Bangalore. What is the minimum capital and how many shareholders do we need?
RA Asked by Ramesh Bhat from India
Quick Answer
Under the Companies Act 2013, a private limited company requires a minimum of two shareholders and two directors, with a maximum of 200 members.
Detailed Legal Analysis
Under the Companies Act 2013, a private limited company requires a minimum of two shareholders and two directors, with a maximum of 200 members. There is no longer a minimum paid-up capital requirement after the Companies (Amendment) Act 2015 removed the earlier Rs 1 lakh threshold.
You can incorporate the company through the SPICe+ portal on the MCA website by filing the required forms along with identity proofs and address proofs of directors and shareholders. The registered office must be established within 30 days of incorporation, and you must obtain a certificate of commencement of business if applicable.
Once incorporated, you are subject to annual compliance requirements like filing financial statements (AOC-4) and annual returns (MGT-7) with the Registrar of Companies. It is advisable to also obtain a PAN, TAN, and GST registration depending on your business activities.
Legal Provisions Referenced
Verify the current statutory text at India Code (the official repository of Indian legislation) or the Legislative Department. This answer is general legal information, not advice on your specific matter.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.