Increase in Capital
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Increase Authorised Capital of Private Limited Company
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 Authorised Capital of the Company.
➦ Filing of Documents with ROC
We will file the required form s & documents with ROC to increase Authorised Capital.
➦ Filing of Amendment of MOA
We will file the amendments in MOA to make it authorized to Increase the Capital.
Note down the Required Documents
✍ Notice of Extra Ordinary General Meeting.
✍ Certified true copy of the ordinary resolution.
✍ Altered Memorandum of Association.
You need not be worried about these documents as our team of professionals will prepare all those documents for you.
*Stamp Duty on increased capital will be separately charged from the Client.
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Know how to increase the Authorised Capital of the Company
The Authorised Capital capital of a Company determines the number of shares a Company can issue to its shareholders. An increase in authorized capital might be required for issuing new shares and/or inducting more capital into the Company. 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 authorised 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 authorised 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.
In relation to a company, it is the amount mentioned in the capital clause of the Memorandum of Association of the company. Up to this amount the company can raise capital. If the company wants more capital then the capital clause has to be amended by the members by passing a special resolution at a meeting.
When an entrepreneur decides to get company registration and settles on the business structure most suited to the purpose of the business and other co-owners, it is essential to decide what the share capital of the company is to be and how can we Increase Authorised Share Capital.
1. What do we mean by Authorised share capital?
Authorised share capital means that maximum amount of money which company can raise through share capital. It is also known as nominal capital.
2. What is the difference between Authorized Capital & Paid up capital?
The Authorized Capital of the Company is the maximum limit upto 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.
3. What documents are required for increasing the capital?
MOA, AOA, documents for Board Meeting of the Company and documents for Extra Ordinary General Meeting (EGM) of the Company.
4. What is time limit to file change of capital documents with ROC?
The time limit is 30 days from passing of the Board Resolution for Increasing of Authorized Share Capital.
5. Can paid up share capital be more than authorised share capital?
No, paid up share capital can be equal or less than the authorised share capital but cannot be more than authorised share capital.