The Landmark Legal Reform: Abolition of Minimum Capital
Prior to 2015, Section 2(68) of the Companies Act, 2013 mandated a minimum paid-up capital of ₹1,00,000 to incorporate a Private Limited Company. However, through the Companies (Amendment) Act, 2015, the Government of India officially removed this requirement to promote the Ease of Doing Business.
Today, you can incorporate a company in Assam with a paid-up capital of just ₹2, ₹100, or ₹1,000. You do not need to show proof of funds or freeze money in an escrow account during the application.
Authorized Capital vs. Paid-Up Capital Explained
To plan your business finances correctly, you must distinguish between these two foundational concepts:
Authorized Capital
The maximum value of shares the company is legally authorized to issue to shareholders. Most startups in Assam set their initial authorized capital at ₹1,00,000 or ₹10,00,000. Setting it up to ₹15,00,000 maintains zero MCA government fees.
Paid-Up Capital
The actual money that shareholders deposit into the corporate bank account in exchange for shares. For example, if you and your co-founder issue 10,000 shares of ₹10 each, your paid-up capital is ₹1,00,000. This money can be spent immediately on business operations.
How Much Liquid Money Do You Actually Need?
To successfully launch without cash-flow friction in Assam, you should budget for two distinct buckets:
- Statutory & Incorporation Package: Transparent flat fee of ₹18,000 all-inclusive covering Class-3 DSC cryptographic tokens for 2 directors, Assam State Stamp Duty, constitutional drafting, name reservation, RoC Shillong filing, PAN/TAN, corporate bank account, and INC-20A Commencement of Business.
- Share Capital Infusion (Post-Incorporation): Whatever nominal amount you choose (e.g., ₹10,000) deposited into the company's bank account within 180 days to file Form INC-20A.
Common Questions from Assam Founders
Q. Do I need to show a bank balance before registering the company?
No. The RoC Shillong does not request bank statements or minimum balance proof during incorporation. You only deposit your agreed share capital after your corporate bank account is opened.
Q. Can I increase my authorized capital later?
Yes. As your startup scales or raises funds from investors in Guwahati, Delhi, or Bangalore, your company can increase its authorized capital at any time by passing an ordinary resolution and filing Form SH-7 with RoC.
Start Your Business Legally in Assam Today
WebArtStudios provides complete end-to-end company and firm incorporation in Assam. From drafting constitutional deeds and SPICe+ MCA filings to GST, Trade License, and Udyam MSME certificate setup, our local CAs handle everything smoothly.