Increase In Authorised Capital

The authorised 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. The initial authorised capital of the Company is mentioned in the Memorandum of Association of the Company and is usually Rs. 1 lakh. The authorised capital can be increased by the company at anytime with shareholders approval and by paying additional fee to the Registrar of Companies.

To begin the process for increasing authorized capital a resolution must be passed by the Board of Directors. In the Board Resolution, authorisation must be provided for increasing the authorised capital of the company and making the necessary changes to the MOA and AOA of the company. IndiaFilings can help you easily increase the authorised capital of your company.

Advantages & Benefits

Paid-up Capital
Paid up share capital of a company is the amount of money for which shares were issued to the shareholder for which payment was made by the shareholder.
Authorised Capital
Most promoters incorporate their company with an authorised capital of Rs.1 lakh or Rs.10 lakh and issue shares with a value of Rs.1 lakh or less to founding members.
Increase Capital
The authorised capital of a company can be easily changed by paying additional government fee, as prescribed by the Ministry of Corporate Affairs.
Board Approval
The increase in authorised capital of a Company, must be approved by the Board of Directors of the Company.

FAQs

The Authorized Share Capital has to be minimum Rs. 1 Lac and there is no minimum limit for Paid Up Share Capital.
There is no limit for maximum 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.
MOA, AOA, documents for Board Meeting of the Company and documents for Extra Ordinary General Meeting (EGM) of the Company.
The fees is Rs. 300 for filing Form SH.7.
The time limit is 30 days from passing of the Board Resolution for Increasing of Authorized Share Capital

Testimonials

I have received the company incorporation documents and extremely pleased to see the way documents are arranged. The service provided exceeded all the expectations. It’s been a great experience to work with to get this done. I would definitely give five stars to process and the way dealt with the customer. I would promise to recommend my friends if something they would need that serve. Thumbs up for the services and I would like to say WOW!!!! Thanks!!

SANTOSH KUMAR SINGH

DIRECTOR , AGROMISSION TECHNOLOGY INDIA LIMITED

I am writing to convey my appreciation to the staff at Group for the services rendered to obtain the incorporation of my company in India. I found the professionalism of the staff at Group, a pleasure to work with. As a foreigner to India, they took the time to explain the documentation and assisted in every question I raised. I was pleased that Group made a case for my business name and that I received the name that I wanted. I was completely satisfied with their service and strongly recommend them to anybody desirous of starting a business in India

PRAVISH KUMAR

DIRECTOR ,ORNIC HEALTHCARE PRIVATE LIMITED