Minimum Capital to Register a Company in India
Publishing Date: 7 November, 2026
There is no fixed minimum capital for a private or public limited company in India. The requirement was removed in 2015. Many founders still choose ₹1 lakh authorised capital because it is simple and credible, but you can choose an amount that suits your business.
Many people still believe a private company needs ₹1 lakh and a public company ₹5 lakh. Those limits were removed by the Companies (Amendment) Act, 2015.
Authorised vs paid-up capital
| Term | What it means | Example |
|---|---|---|
| Authorised capital | The maximum share capital the company may issue | ₹1,00,000 |
| Issued and subscribed capital | Shares the founders agree to take | ₹1,00,000 |
| Paid-up capital | Money actually paid for those shares | ₹1,00,000 |
Stamp duty and some government fees depend on authorised capital, so setting it far higher than you need raises the cost today. You can increase authorised capital later.
How much should you choose?
- Service business: ₹1 lakh is common and usually enough.
- Licensed or regulated business: check your regulator first, as some sectors set their own net worth or capital rules.
- Importer, tender bidder or borrower: your counterparties may expect more.
- Foreign investment: check any sector conditions and pricing rules.
Do you need to deposit the money?
Yes, once the company is registered. Subscribers must pay for the shares they agreed to take, and the company files INC-20A within 180 days of incorporation to declare this. A business that misses this filing faces penalties and cannot start business lawfully.
Does capital change the cost?
Yes. MOA and AOA stamp duty varies by state and, in many states, by capital. Our company registration cost calculator shows the estimate, and our private limited registration page has a state-by-state cost section.
Frequently Asked Questions
Q1. Can I register a company with ₹10,000 capital?
Legally yes, as there is no minimum. Consider whether the amount is credible for your banks, customers and day-to-day expenses.
Q2. Is the capital money locked up?
No. Once paid into the company’s bank account, it can be used for genuine business expenses.
Q3. Is there a minimum capital for an LLP?
No. An LLP has no minimum contribution, though partners should agree a realistic amount.
Q4. Can I increase capital later?
Yes. The company passes the required resolutions, pays the fee and stamp duty, and files the forms with the ROC.
Related guides
Mukul Tomar writes Vaidam Consultancy’s guides on company registration, GST, income tax and ROC compliance. An experienced blog writer on Indian tax and business law, his articles have also been published on TaxGuru. He turns complex rules into clear, practical steps that business owners can act on.
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