INCREASE IN AUTHORISED SHARE CAPITAL

For issuing new equity shares and is required first to increase the authorized share capital. Experience our fastest and reliable registration at best challenging affordable rates with fastest processing.

Apply for increase in authorized share capital

MEANING OF AUTHORIZED SHARE CAPITAL

The authorized share capital is the maximum amount of capital. Raised by company through the issue of shares to its shareholders. Authorized share capital is specified in the Memorandum of Association of the company. It is the maximum amount upto which the company can raise its capital.

But in case, during its course of business operation, company requires additional capital for expansion for meeting its working capital requirements or issuing new shares and inducting more capital into 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 acknowledgment 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 – It refers to the maximum amount of capital a company may raise.
Issued Capital – It refers to the authorised capital, which is issued to raise capital.
Subscribed Capital – It refers to the issued capital, which is subscribed to be paid by the shareholders.
Paid-up Capital – 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 and notice of increase in share capital is filed in SH-7 along with the altered MoA and AoA.

PROCEDURE FOR ALTERATION OF AUTHORIZED SHARE CAPITAL

The procedure for alteration of authorized share capital are-

Check and amend articles of association

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

Conducted Meeting for approval

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.

Filing & Submission of forms

Filing form SH-7 within 30 days of passing resolution along with required documents and requisite fees.

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

What are the ways of alteration of share capital?

The share capital of the company can be altered in any of the following manners:

Increasing authorised share capital of the company
Consolidating shares into shares of larger amount.
Sub-dividing shares into smaller amount shares.
Converting shares of company into stock or vice versa.
Cancelling shares not taken by anyone.

What are the forms required to be filed for alteration of authorized share capital?

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

SH-7: Notice about alteration of share capital by company to the Registrar.
MGT-14: Filing of special resolution with the Registrar.

What all attachments are required to be filed along with the application to increase share capital?

Attachments required to be filed along with the application to increase share capital are-

Altered copy of MoA and/or AoA.
Copy of Board Resolution.
Notice of general meeting
Copy of resolution passed in general meeting.

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 authorised capital?

Benefits of increasing authorised 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.