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A private company means a company which has a minimum paid up capital of Rs. ____.
- a)1,00,000
- b)5,00,000
- c)50,00,000
- d)none of the above
Correct answer is option 'B'. Can you explain this answer?
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A private company means a company which has a minimum paid up capital ...
Private Company and Paid-up Capital
A private company is a type of company that is privately owned by individuals or a small group of shareholders. It is not listed on the stock exchange and its shares are not available for public trading. In order to be classified as a private company, there are certain requirements that need to be fulfilled, including a minimum paid-up capital.
Definition of Paid-up Capital
Paid-up capital refers to the total amount of money that has been invested by the shareholders of a company. It represents the actual funds that have been received by the company from its shareholders in exchange for the shares they hold. This capital is used by the company to finance its operations and investments.
Minimum Paid-up Capital for a Private Company
In the given question, we are asked to determine the minimum paid-up capital required for a private company. Let's analyze the options provided:
- Option A: 1,00,000
- Option B: 5,00,000
- Option C: 50,00,000
- Option D: none of the above
The correct answer is Option B: 5,00,000.
According to the Companies Act, 2013 in India, the minimum paid-up capital for a private company is 5,00,000 rupees. This means that a private company needs to have at least 5,00,000 rupees as its paid-up capital in order to meet the legal requirements and operate as a private company.
Therefore, Option B is the correct answer as it represents the minimum paid-up capital required for a private company.
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A private company is a type of company that is privately owned by individuals or a small group of shareholders. It is not listed on the stock exchange and its shares are not available for public trading. In order to be classified as a private company, there are certain requirements that need to be fulfilled, including a minimum paid-up capital.
Definition of Paid-up Capital
Paid-up capital refers to the total amount of money that has been invested by the shareholders of a company. It represents the actual funds that have been received by the company from its shareholders in exchange for the shares they hold. This capital is used by the company to finance its operations and investments.
Minimum Paid-up Capital for a Private Company
In the given question, we are asked to determine the minimum paid-up capital required for a private company. Let's analyze the options provided:
- Option A: 1,00,000
- Option B: 5,00,000
- Option C: 50,00,000
- Option D: none of the above
The correct answer is Option B: 5,00,000.
According to the Companies Act, 2013 in India, the minimum paid-up capital for a private company is 5,00,000 rupees. This means that a private company needs to have at least 5,00,000 rupees as its paid-up capital in order to meet the legal requirements and operate as a private company.
Therefore, Option B is the correct answer as it represents the minimum paid-up capital required for a private company.
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A private company means a company which has a minimum paid up capital of Rs. ____.a)1,00,000b)5,00,000c)50,00,000d)none of the aboveCorrect answer is option 'B'. Can you explain this answer?
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