Increase Authorized Capital of Company

Authorized Capital determines the number of shares a company can issue to its shareholders.

₹ 3,590/-

Increase Authorized Capital of Private Limited Company

Increase the Authorized of your company for ₹3,590/- Only (Inclusive of Government Fees and taxes)

The Authorized Capital of a Company determines the number of shares a Company can issue to its shareholders. In order to issue new shares or introduce more capital in the Company, an increase in authorized capital may be required. Our professional can help you with respect to the filing and issuing of share with respect to the increase in authorized share capital of the Company.

The maximum number of shares a private limited company can issue is decided by its authorized capital. Most start-ups start their journey with the minimum authorised capital of ₹ 1 lakh, but this is too little as the business grows. To issue new shares or raise the capital a company is authorized to raise, the capital clause of the Memorandum of Association needs to be amended by passing a special resolution of the board. If, at this point, you may also need shares to be issued to existing promoters or new shareholders.

Authorized Capital is the amount referred to in the Company’s Memorandum of Association’s capital clause. The company can raise funds to this extent. When the enterprise desires further capital, it is necessary to alter the capital clause by adopting a special resolution at a meeting of its members.

Note Down The Documents Required To Increase Authorized Capital

  • Notice of Extra Ordinary General Meeting
  • Certified true copy of the ordinary resolution
  • Altered Memorandum of Association

TaxRodo Services Description

Increase in authorized capital must be done with proper board resolution and filing of forms with Registrar of Companies. We at TaxRodo will do the required filing for the increase of capital:

  • Resolutions & other Documents – We will prepare the necessary documents required for increase in Authorized Capital of the Company.
  • Filing of Documents with ROC – We will file the required forms & documents with ROC to increase Authorized Capital.
  • Filing of Amendment of MOA – We will file the amendments in MOA to make it authorized to Increase the Capital.

FAQs to Increase Authorized Capital

Authorized share capital means that maximum amount of money which company can raise through share capital. It is also known as nominal capital.

The Authorized Capital of the Company is the maximum limit up to which a Company can issue shares and Paid Up Capital is that part of the Authorized Capital for which Shareholders have made the investment into the Company.

The time limit is 30 days from passing the Board Resolution for Increasing the Authorized Share Capital.

No, paid up share capital can be equal to or less than the authorized share capital but cannot be more than the authorized share capital.

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