What is Face Value explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Face Value is a term you will often come across in Company Law. This guide explains what Face Value means, gives a simple example, and shows why it matters for taxpayers and businesses — in plain English.
What is Face Value?
Face Value is the nominal or original value of a share as stated in the company's books and share certificate.
In practical terms, Face Value is a company-law concept — it governs how companies are formed, managed or how their decisions are made. Understanding it helps you read financial documents, stay compliant and make better decisions.
Face Value explained with an example
A share with a face value of ₹10 issued at ₹60 carries a ₹50 share premium. Examples like this make it easier to see how Face Value works in real situations.
Why Face Value matters
Face value is the base on which dividends, premium and capital are computed.
Face Value at a glance
| Category | Company Law |
| Meaning | The nominal or original value of a share as stated in the company's books and share certificate. |
| Example | A share with a face value of ₹10 issued at ₹60 carries a ₹50 share premium. |
Key points to remember
- Where it applies: Company Law
- In short: The nominal or original value of a share as stated in the company's books and share certificate.
- Why it matters: Face value is the base on which dividends, premium and capital are computed.
Related terms
If you are learning about Face Value, these related terms are worth knowing too:
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