INCREASE IN PAID-UP SHARE CAPITAL

Paid-up Share Capital is the amount received from the shareholders by the company in exchange for shares of stock. Experience our fastest and reliable compliances at best challenging affordable rates with fastest processing.

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MEANING OF PAID SHARE CAPITAL

Paid-up Share Capital is also denoted as paid-in capital or contributed capital which means the amount received from the shareholders by the company in exchange for shares of stock. The shareholders receive shares in the company Share Capital payments and it cannot be more than the Authorised Share Capital of the Company.

The Paid-up share capital is the part of issued share capital .It is the amount of payment made by the shareholders. Paid-up share capital shall not be more than issued share capital of the company.

HOW WE WORK

1. Fill the form and make nominal payment.

2. Our experts will collect and verify the necessary documents.

3. Make the balance payment.

4. Preparation and filing of application for increase in capital of Company along with all the information.

5. You will receive acknowledgement for filing.

CONGRATULATIONS YOU GOT YOUR CAPITAL INCREASED DONE!!!

DOCUMENTS REQUIRED OF INCREASE IN CAPITAL

Digital Signature Certificate

DSC of one of authorized director to sign forms.

MoA & AoA

A copy of latest amended MoA and AoA of the company.

Resolution Copy

Copy of resolution passed for increase in authorised capital.

Details of company

Copy of PAN card of the company.
Certificate of Incorporation of company.

Types of Share Capital in Companies

Authorised Capital	Issued Capital	Subscribed Capital	Paid-up Capital
It refers to the maximum amount of capital a company may raise.	It refers to the authorised capital, which is issued to raise capital.	It refers to the issued capital, which is subscribed to be paid by the shareholders.	It refers to the part of capital, which is subscribed and paid by the shareholders.

TIME LIMIT OF FILING FORM

The time limit within which the forms for the share capital increase should be filed with MCA is within 30 days after obtaining consent from shareholders.
The resolution so passed is intimated in MGT-14.

WAYS TO ISSUE PAID-UP SHARE CAPITAL

Public offer of shares through prospectus
Private placement of shares
Right issue or bonus issue of shares

PROCEDURE FOR ALTERATION OF PAID SHARE CAPITAL

Check and changing the clauses of article

Check whether the articles of the company authorise it to make changes in the share capital of the company.

Meeting and approval of change

Conducted Meeting of Board of Directors of the company and passing resolution for –

Approving the proposed changes
Approving Notice of general meeting
Authorising person to issue notice of general meeting.

Holding general meeting of the company after giving 21 days clear notice to alter share capital of the company.

Collecting required documents and information

For the purpose of change all the required documents and information shall be collected to fill the form.

Filling and submission of e-form

E-form will be filled with proper information and attachment required will be attached. Submission of form after filling along with the payment prescribed.

Frequently Asked Questions

For increase in share capital of Private Limited Company which approvals or consent are required?

For increase in capital following consent or approval shall be received:

Consent from the Board
Consent from the members of the company
Approval from concerned RoC

How does the increase in capital impact the company in filing fee?

The Government fee of MCA for any e-form filed depends on the authorized capital of the company. In case of increase in Authorised capital, the Government fee for online filing also increases, upto a nominal extent.

Whether increase of share capital is reflected on MCA portal?

Yes, both total authorized and paid-up capital is reflected on the Master Data of the company on the MCA portal.

What are the ways to issue share capital?

The company can issue share capital in any of the following ways:

Public offer of shares through prospectus.
Private placement of shares.
Right issue of shares.
Bonus issue of shares.

What are the forms required to be filed for alteration of paid-up share capital?

Forms required to be filed for alteration of paid-up share capital are-

PAS-3: filing of Return of Allotment of shares by the company to ROC.
MGT-14: Filing of special resolution with the Registrar.

What are the particulars of allottees to be filed with registrar?

Following particulars of allottees are required to be filed –

Personal details of the allottees – Name, E-mail ID, PAN number.
Date of allotment of shares.
Type of shares allotted.
Number and total value of shares held.

What is required to be done in case articles do not authorise to alter share capital?

If the Articles of the company do not authorise to alter the share capital of the company then company is required to alter the articles first.
For alteration of articles special resolution in the general meeting shall be passed.
After passing special resolution form MGT-14 is to be filed within 30 days of passing resolution along with the copy of altered AoA and copy of special resolution.

What are the benefits of increasing paid-up capital?

Benefits of increasing paid-up capital are-

Allow further issue of capital-
The company cannot raise capital beyond the amount prescribed in the MoA. thus, to increase the paid-up capital, first authorized capital must be increased.
Borrowing capacity Increases-
It Increases internal funding capacity supporting the borrowing capacity of the company. Higher the capital, higher the net worth and eventually borrowing capacity.

Do the applicant requires to present physically for filing application for increase in share capital?

No, You are not required to be physically present for the filing application for increase in share capital. LegalDisha provides you online services and assistance for the same.