Increase Authorized Capital of a Company
Increase in authorized or paid-up capital must be done with proper board resolution and filing of forms with Registrar of Companies.
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How to Increase Authorized Capital?
When a business visionary decides to obtain business registration and completes the business structure most suitable for the business’s purpose and other co-owners, it is essential to determine the authorized capital of the organization and how to Increase It. The offered capital is that part of an organization’s value that has been raised by issuing shares and selling them to investors in return for capital (money or other consideration.
What are the Documents required for increasing authorized Capital?
- Board resolution for notice of EGM of the Company.
- Notice of Extraordinary General Meeting(EGM)
- Normal Resolution
- Changed Memorandum and Articles of the Company.
What is included in this package?
- Checking DSC Availability
- Preparation of Board Resolution
- Making ROC Payment
- Name Approval Letter
What is the process for increasing authorized Capital?
- Verifying approval within the Articles of Association
- Board meeting to notify of the incident of the EGM.
- RDC form documenting
FAQ's
What is minimum Capital Requirement?
The Authorized Capital has to be minimum Rs. 1 Lac and there is no minimum limit for Paid up Capital.
What is the difference between Authorized Capital & Paid up 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.
Whether General Meeting is mandatory to hold for change in authorized Share Capital of the company?
Yes, Holding of AGM is mandatory to increase authorized share capital.
How to change the authorized Share Capital of the Company as per Companies Act 2013?
AA company can increase its authorized capital by filing Form SH-7 within 30 days from the date of passing the resolution i.e. from the date of alteration.
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.
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.
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