Increase in Authorised Capital
Authorized share capital is the maximum amount of share capital of a company. This means that the company cannot issue shares for more than this amount. However, it is possible to increase authorized share capital of a company. The Companies Law, 2013 allows a company to do so under Sections 13, 61, and 64.
Steps to Increase Authorized Share Capital
The first condition for increasing authorized capital is authorization by the Articles of Association. A company cannot increase its authorized share capital if its AoA does not allow it. Therefore, the first step would be to check if the AOA allows such increase. If there is no such provision, the company needs to alter its AOA before proceeding.
After alteration (if any), the following steps are involved:
- Issuing a notice and calling a Board Meeting.
- Getting approval from directors for increasing the authorized capital.
- Holding the Extraordinary General Meeting (EGM).
- Passing a resolution under the Companies Act.
- Altering the MOA.
- Intimating the ROC in Form SH-7 within 30 days.
Documents to Increase Authorized Share Capital
For a seamless process, please keep the following documents ready:
- Notice of EGM.
- A certified true copy of the resolution passed at EGM.
- The altered MOA of the company.
Fee to Increase Authorized Share Capital
The government fee starts from Rs. 2000 for OPCs and small companies and Rs. 5000 for other companies. The professional fee starts from Rs. 4000.
Timeline to Increase Authorized Share Capital
We will file the intimation to ROC within 2 business days of receiving all relevant details from your end.
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