What is the Minimum Share Capital?
There are three distinct sorts of share capital classifications - Authorized Capital, Paid-Up Capital and Subscribed Capital. Under the Companies Act 2013, any private restricted organization needed to approve or deliver at least Rs. 1 Lakh as least offer capital. For public restricted organizations, that total was Rs. 5 Lakh. Presently, the Companies Amendment Act, 2015, has eliminated that prerequisite for private restricted endeavors as it were. Consequently, the base measure of offer capital relies exclusively upon the idea of the business and its prerequisites.
The Joint Stock Company is a major type of business association. The sum expected by the organization for its business exercises is raised by the issue of offers. The sum so raised is called 'Offer Capital' (or capital) of the organization. It very well might be noticed that an organization restricted by offers will have share capital. An organization restricted by ensure or a limitless organization might not have any offer capital. The people who purchase the portions of organization are called 'Investors'.
Sorts of Share Capital: (I) Authorized, enrolled or ostensible capital (ii) Issued capital (iii) Subscribed capital (iv) Called up capital (v) Paid up capital
you can peruse more on " Share Capital Reduction " here
(I) Authorized, enlisted or ostensible capital: This is how much capital with which the organization expects to get itself enrolled. This is how much offer capital which an organization is approved to issue. Ostensible capital is separated into portions of a decent sum. It should be set out in the notice of affiliation. It very well may be expanded or diminished by following the endorsed methodology.
(ii) Issued capital: It is that piece of the ostensible capital which is really given by the organization for public membership. An organization need not issue the whole approved capital immediately. It continues raising the capital as and when the requirement for extra assets is felt. The contrast between the ostensible and the gave capital is known as 'unissued capital', which can be given to general society sometime in the future. Where the entire of approved capital is proposed to the general population, the approved and gave capital will be something similar. Given Capital can't be more than the approved capital. Given capital incorporates the offers distributed to public, merchants, signatories to reminder of affiliation and so on
(iii) Subscribed capital: It is that measure of the ostensible worth of offers which have really been taken up by people in general. It is that piece of the ostensible capital which has really been taken up by investors who have consented to give thought in kind or in real money for shares gave to them. Where offers gave for membership are entirely bought in for, gave capital would mean exactly the same thing as 'bought in capital'. That piece of given capital which isn't bought in by people in general is called 'Withdrawn Capital'. Bought in capital can't be more than gave capital.
(iv) Called up capital: The sum due on the offers bought in might be gathered from the investors in portions at various spans. Called up capital is that measure of the ostensible worth of offers bought in for which the organization has requested that its investors pay through calls or in any case. In the event that 10,000 portions of Rs 100 each have been bought in by general society, and the organization has requested that the investors pay Rs 10 on application, Rs. 20 on distribution and Rs 30 on first call, then, at that point, the called up capital of the organization would be Rs. 6, 00,000 (for example 10,000 x 60). The excess sum for example Rs. 40 for every offer on 10,000 offers (for example Rs 4, 00,000) would be the uncalled capital of the organization.
(v) Paid up capital: That piece of the called up capital which is really settled up by the individuals is known as the settled up capital. As such, settled up capital addresses the all out installments made by the investors to the organization because of the calls made by the organization. Settled up capital of the organization is determined by deducting the brings falling behind financially from the called up capital. Settled up capital = Called up capital Less Calls-financially past due: For instance, out of 10,000 portions of Rs 100 each, on which Rs 60 has been called by the organization from the investors, one investor, holding 100 offers, neglects to pay the main call of Rs 30 for every offer on his portions, the settled up capital of the organization would be Rs 6, 00,000-Rs 3,000 for example Rs 5, 97,000.
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It may seem challenging to decide on the type of entity to form to complement your business needs and objectives.
But if you want to open a legally incorporated non-profit organization in Hong Kong, you should open a company limited by guarantee.
Since it is a non-profit organization, no profit is distributed to the members.
Instead, the money will be used to fund the objective of the organization further.
In other words, the owners of the company are not regarded as joint to the business.
Additionally, the directors of the company can be changed without affecting the activities and operations.
