Easily enhance your company’s capital-raising potential
Share capital represents the part of a company’s capital raised through the issuance of shares. A company can issue shares only up to the limit of its authorized capital, as outlined in the Capital Clause of its Memorandum of Association (MoA).
To boost its fundraising capacity, a company needs to increase its authorized capital. This can be done anytime after incorporation by paying the required stamp duty and additional fees. The process includes conducting Board and Shareholders’ meetings to approve the change, followed by submitting an application to the Ministry of Corporate Affairs (MCA) to amend the Capital Clause in the MoA.
A company is permitted to issue shares only up to the limit specified in its Memorandum of Association (MoA). Therefore, to raise additional paid-up capital, the authorized capital must be increased first.
Increasing a company’s authorized capital enhances its internal funding potential, which raises its net worth and improves its capacity to obtain loans or other forms of borrowing.
DSC of one of authorised director to be provided
A copy of latest amended MoA and AoA of the company
Certificate of Incorporation of company to be provided
Copy of PAN card of the company to be provided
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It is the maximum amount of capital a company may raise
It is that part of authorised capital, which is issued to raise capital
It is that part of issued capital, which is subscribed to be paid by the shareholders
It is that part of capital, which is subscribed and paid to company by the shareholders
*Subject to Government processing time
The increase in capital requires the following approvals:
Consent of the Board of Directors;
Consent of the company’s members; and
Approval from the concerned Registrar of Companies (RoC).
Yes, the total authorized and paid-up capital is displayed on the Master Data of the company on the MCA portal.
The government fee for filing any e-form with the MCA is based on the company’s authorized capital. As the authorized capital increases, the filing fee also rises, though only by a nominal amount.
Yes, the package cost also includes the increase in paid-up capital of the company, but not the transfer of shares.
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