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THINGS TO KNOW BEFORE YOU REGISTER-
INCREASE IN AUTHORISED CAPITAL

INTRODUCTION:

  • 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 maximum limit to which a company can raise its capital.

Advantages:-

  • 1. The increase in capital for the company raised by selling additional shares of stock can finance additional company growth.
    2. Despite possible dilution of shares, increases in capital stock can ultimately be beneficial for investors.
    3. If the company successfully invests the additional capital, then the ultimate gain in stock price and dividend payouts realized by investors may be more than sufficient to compensate for the dilution of their shares.
    4.  With an infusion of cash derived from the sale of stock, the company may grow its business without having to borrow from traditional sources
    5. Once the company has gone public, additional equities may be easily sold to raise capital. A publicly-traded company with stock that has performed successfully will usually find it easier to borrow money.

Documents Required:-

  • 1. Board resolution for notice of EGM of the Company.
    2. Notice of Extraordinary General Meeting
    3. Ordinary Resolution.
    4. Altered Memorandum and Articles of the Company.

BASIC

All Inclusive Fees
4,899
  •  

PRO

All Inclusive Fees
9,899
  •  

PREMIUM

All Inclusive Fees
14,999
  •  

Procedure:-

  • 1. Authorisation in article.
    2. Calling of Board Meeting.
    3. Issue Notice of the Extra-ordinary General meeting (EGM).
    4. Holding of General Meeting.
    5. ROC form filing within 30 days of passing OR with required documents.
    6. Concerened ROC will check the E-Form and attached documents and will approve the increase in authorised share capital.

FAQs:-

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.

The Authorized Share Capital has to be minimum Rs. 1 Lac and there is no minimum limit for Paid Up 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.

APPLY FOR INCREASED IN AUTHORISED CAPITAL