THINGS TO KNOW BEFORE YOU REGISTER- INCREASE IN AUTHORISED CAPITAL
Authorised Share Capital means the maximim amount upto which a Company can raise funds in the form of equity or prefernce shares.When Company wants to raise more funds than its existing authorised share capital, in this case need arise for increase in authorised share capital of the Company. The authorised capital of a company is the limit to which a company can raise its capital. We, the Team at startupcounter.com will be glad to help you for the same at reasonable charges.
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INTRODUCTION
ADVANTAGES
List Of Documents Required For Increase in Authorised Capital
Board resolution for notice of EGM of the Company.
Notice of Extraordinary General Meeting
Ordinary Resolution.
Altered Memorandum and Articles of the Company.
Our Packages for Increase in Authorised Share Capital
BASIC
All Inclusive Fees
- 4,899/-
- Increase Authorized Up to 10 Lakh
PRO
All Inclusive Fees
- 9,899/-
- Increase Authorized Up to 25 Lakh
PREMIUM
All Inclusive Fees
- 14,999/-
- Increase Authorized Up to 100 Lakh
Procedure Of Increase in Authorised Share Capital
Step - 1 Obtain Approval From The Company's Board Of Directors For Increase Of Captial Of Company
To decide on a new limit for authorised capital, or to change the capital provision of the MOA, the board of directors must conduct a lawfully convened meeting. The agenda for the meeting must be included in the notice provided to the directors, and we recommend including the proposed resolution so that the directors arrive prepared. For board certification, we strongly advise adhering to the ICSI requirements outlined in SS-1.
Step - 2 Issue Notice Of The Extra-Ordinary General Meeting (EGM).
The next obvious step is to seek approval from the company's shareholders. Only a valid extraordinary general meeting can make a decision on behalf of shareholders. To call an EGM, the board of directors must send notice to every company shareholder at least 21 days before the meeting. The agenda, as well as a draught of the proposed resolution to be voted as a special resolution, must be included in the EGM notification.
Step - 3 Submission Of Form -MGT-14 To Roc As A Special Resolution
A special resolution is one in which more than 75% of the voting rights are used to make a decision. Once adopted by the EGM, the special resolution is presented to the ROC for approval. Within 30 days following the resolution's passage, a certified copy of the resolution is filed in Form -MGT-14 with the necessary fee. The modified MOA and a copy of the minutes of the EGM meeting where the special resolution was passed
Step - 4 Filing Of Application For Increase In Authorised Capital In SH-7
The authorised director must file an application in Form SH-7 with the pertinent ROC with attachments such as a copy of the revised MOA & AOA, Special Resolution, and so on, once the shareholders' permission is acquired through the passing of the special resolution in the EGM. The company's authorised capital has increased as a result of the approval of the SH-7.
Step - 4 Concerened ROC Will Check The E-Form And Attached Documents And Will Approve The Increase In Authorised Share Capital.
FAQ
Most Frequent Questions And Answers
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.
Yes, Holding of AGM is mandatory to increase authorised share capital.
The time limit is 30 days from passing of the Board Resolution for Increasing of Authorized Share Capital.
MOA, AOA, documents for Board Meeting of the Company and documents for Extra Ordinary General Meeting (EGM) of the Company.
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.