30 January 2012
I am going to incorporate a private limited comapny, my question is that if i write word manufacture in main objects of the MOA what will be the authorised capital for the private limited company.
Note: I will not mention the word manufacture in company Name example xyz private limited
31 January 2012
I have received the following mail from ROC regarding the word manufacture
This is to inform you that in term of the provisions under Regulation 17 of the Companies Regulations, 1956, the above-cited Form1,Form18,Form32 dated 08-08-2011 filed vide SRN B17822016 has been examined and marked as Sent for resubmission with the following remarks- Form No.1 is returned : a) in mOA in Clause III A 3 word 'Manufacturers' is to be deleted.
26 July 2024
When incorporating a private limited company in India, specifying "manufacture" in the Main Objects clause of the Memorandum of Association (MOA) does not directly determine the authorized capital of the company. Here's a breakdown of how this works:
### 1. **Authorized Capital**
- **Definition**: Authorized capital (also known as nominal capital) is the maximum amount of capital that a company is authorized to raise by issuing shares. It is specified in the company's MOA. - **Determination**: The authorized capital is determined by the founders of the company and is not dependent on the nature of the business mentioned in the MOA.
### 2. **Main Objects of MOA**
- **Purpose**: The Main Objects clause of the MOA specifies the primary activities the company will undertake. Mentioning "manufacture" in this clause indicates that the company intends to engage in manufacturing activities. - **Impact on Capital**: The inclusion of manufacturing as an activity does not affect the authorized capital directly.
### 3. **Setting Authorized Capital**
- **Flexibility**: You can set the authorized capital based on your business requirements and financial planning. Common starting values are ₹1 lakh or ₹5 lakhs, but it can be higher depending on the anticipated scale of operations and investment needs. - **Regulatory Requirement**: The Companies Act, 2013, does not prescribe a specific minimum amount of authorized capital. It should be sufficient to cover the needs of the company's initial operations and future growth.
### 4. **Procedure**
- **Incorporation**: During the incorporation process, you'll need to decide the authorized capital amount and mention it in the MOA. This amount can be increased or decreased later by following the appropriate procedures. - **Company Name**: The use of the word "manufacture" in the Main Objects clause does not need to be reflected in the company name. The company name can be anything that complies with the naming guidelines and availability.
### 5. **Practical Example**
If you are incorporating a private limited company with manufacturing as one of its activities, you might draft the MOA as follows:
**Main Objects Clause:** ``` 1. To carry on the business of manufacturing, producing, processing, assembling, and dealing in [products/items]. 2. To undertake and execute any contracts or agreements for the manufacture of [products/items] and to deal with all kinds of machinery, tools, and equipment necessary for the production. ```
For authorized capital, you might choose: - **Authorized Capital**: ₹5,00,000 divided into 50,000 equity shares of ₹10 each.
**Note**: This is a general guideline. It’s recommended to consult with a company secretary or legal expert to ensure compliance with all legal requirements and to tailor the MOA to your specific business needs.
26 July 2024
When incorporating a private limited company in India, specifying "manufacture" in the Main Objects clause of the Memorandum of Association (MOA) does not directly determine the authorized capital of the company. Here's a breakdown of how this works:
### 1. **Authorized Capital**
- **Definition**: Authorized capital (also known as nominal capital) is the maximum amount of capital that a company is authorized to raise by issuing shares. It is specified in the company's MOA. - **Determination**: The authorized capital is determined by the founders of the company and is not dependent on the nature of the business mentioned in the MOA.
### 2. **Main Objects of MOA**
- **Purpose**: The Main Objects clause of the MOA specifies the primary activities the company will undertake. Mentioning "manufacture" in this clause indicates that the company intends to engage in manufacturing activities. - **Impact on Capital**: The inclusion of manufacturing as an activity does not affect the authorized capital directly.
### 3. **Setting Authorized Capital**
- **Flexibility**: You can set the authorized capital based on your business requirements and financial planning. Common starting values are ₹1 lakh or ₹5 lakhs, but it can be higher depending on the anticipated scale of operations and investment needs. - **Regulatory Requirement**: The Companies Act, 2013, does not prescribe a specific minimum amount of authorized capital. It should be sufficient to cover the needs of the company's initial operations and future growth.
### 4. **Procedure**
- **Incorporation**: During the incorporation process, you'll need to decide the authorized capital amount and mention it in the MOA. This amount can be increased or decreased later by following the appropriate procedures. - **Company Name**: The use of the word "manufacture" in the Main Objects clause does not need to be reflected in the company name. The company name can be anything that complies with the naming guidelines and availability.
### 5. **Practical Example**
If you are incorporating a private limited company with manufacturing as one of its activities, you might draft the MOA as follows:
**Main Objects Clause:** ``` 1. To carry on the business of manufacturing, producing, processing, assembling, and dealing in [products/items]. 2. To undertake and execute any contracts or agreements for the manufacture of [products/items] and to deal with all kinds of machinery, tools, and equipment necessary for the production. ```
For authorized capital, you might choose: - **Authorized Capital**: ₹5L divided into 50K equity shares of ₹10 each.
**Note**: This is a general guideline. It’s recommended to consult with a company secretary or legal expert to ensure compliance with all legal requirements and to tailor the MOA to your specific business needs.
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