Dear Sir/Madam,
Please tell me what is the minimum paidup capital requirement for SMC and other Private limited companies at the time of incorporation.
can it be formed with one share in the name of subscriber of Rs.100/-. Also tell me, is there any minimum threshold for authorized capital.
There is no minimum capital requirement for SMC or Private Limited Company. For SMC there must be one member and for Private Limited company there must be two members at least.
For becoming member holding one share is sufficient.
So two persons holding one share of Rs.10, each may run Private Limited Company or one person holding one share of Rs.10 may run SMC (Pvt) Limited.
There is no minimum threshhold for authorized capital. However, as registration fee up to Rs.100,000 is same so companies usually get themselves registered with Rs.100,000 nominal capital.
However, we advise the subscribers keep more than one share with them, say 10 shares . This is beneficial in case they want to introduce new member. They would just transfer existing shares to the new person to make him member. However, if the existing subscribers are keeping one share only, then the Company will have to issue further shares for which requirements of s.86 of the Companies Ordinance, 1984 are to be complied with
Thank you so very much sir, i am highly obliged.