1. Abolition of Minimum Paid-Up Capital Requirement

• Earlier, a private limited company was required to have a minimum paid-up capital of ₹1 lakh
  
• This requirement was removed in 2015 under the Companies (Amendment) Act
  
• Now, a company can be formed with any amount of capital, even as low as ₹1 per shareholder
  

2. Authorized Capital Requirement

• The company must still declare an authorized share capital in the incorporation documents
  
• Authorized capital is the maximum amount of share capital the company is legally allowed to issue
  
• This is generally declared as ₹1 lakh or more, but can be increased as needed by paying additional stamp duty
  

3. Flexibility for Startups and Small Businesses

• Startups can begin operations with minimal investment
  
• Promotes easier access to incorporation for individuals and small teams
  
• Helps reduce financial burden in the early stages of business
  

4. Compliance Still Applies

• Even without a minimum capital requirement, all companies must maintain proper accounting, statutory filings, and audit compliance
  
• Any capital introduced must be shown in the company’s balance sheet and ROC filings
  

5. Optional Capital Increase

• Companies can increase their authorized or paid-up capital at any time by passing a board resolution and filing with the Registrar of Companies
  
• This flexibility allows businesses to scale without structural restrictions