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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 'A'. Can you explain this answer?
Verified Answer
A private company means a company which has a minimum paid up capital ...
Private Company and Minimum Paid-up Capital
Definition of a Private Company:
- A private company is a type of company that is privately held and not publicly traded.
- It is usually formed by a small group of individuals or by a family.
Minimum Paid-up Capital Requirement:
- The minimum paid-up capital requirement for a private company varies from country to country.
- In India, the minimum paid-up capital requirement for a private company is Rs. 1,00,000.
- This means that the company must have at least Rs. 1,00,000 as the initial capital investment.
Explanation of Options:
Option A: 1,00,000
- This option is correct as it is the minimum paid-up capital requirement for a private company in India.
Option B: 5,00,000
- This option is incorrect as it exceeds the minimum requirement.
Option C: 50,00,000
- This option is incorrect as it exceeds the minimum requirement.
Option D: None of the above
- This option is incorrect as the correct answer is option A.
Conclusion:
- A private company in India is required to have a minimum paid-up capital of Rs. 1,00,000.
- Therefore, option A is the correct answer.
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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 'A'. Can you explain this answer?
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