Increase in Authorized Capital of Company
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Increase in Authorized Capital
As the company grows its size of operation also increases. At a later stage, the company while performing its business operations may need more funds for expansion of its business or, to meet the expenditure requirements that may arise in future. These requirements can be met by increasing the authorized share capital of the company. The authorized share capital is the maximum amount of shares value which a company can allot to its shareholders.
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.
What Is Included In Our Package?
Procedure For Increase in Authorized Capital
Documents Required For Increase in Authorized Capital
Board resolution for notice of EGM of the Company.
Notice of Extraordinary General Meeting
Ordinary Resolution passed in the meeting of shareholders
Altered Memorandum and Articles of the Company.
Minutes of the Extraordinary General Meeting
Frequently Asked Questions
The Authorized Share Capital has to be minimum Rs. 1 Lac for pvt ltd company & minimum rupees 5 lakhs for public limit company and there is no minimum limit for Paid up Share 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.
Altered MOA/ AOA, documents for Board Meeting of the Company and documents for Extra Ordinary General Meeting (EGM) of the Company.
The time limit is 30 days from passing of the Resolution for Increasing of Authorized Share Capital.
A 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.
Yes, Holding of General Meeting is mandatory to increase authorised share capital.