Benefits of Increasing Authorized Share Capital
Expansion of Business
If a company planning for a business expansion or introducing a new business activity may require additional capital. In such cases, if the paid up capital reached the limit of Authorized Share Capital or the difference in the Authorized Share Capital and Paid up Capital wouldn’t meet the requirement of the situation, the company have to increase the Authorized Share Capital.
Show MoreEnhance Borrowing Capacity
A company with good financials will always find interests investors. With the higher Authorized Share Capital, the value of the company as well rises, which supports the borrowing capacity of the company.
Show MoreFurther Issue of Shares
A company only can rise funds through shares up to the limit of Authorized Share Capital prescribed in the MoA and in the cause of demand of more capital, the company has to increase the limit of Authorized Share Capital and as per new limit, can distribute the share among the shareholders.
Show MoreIncrease Authorized Share Capital of Company Online
Documents Required for Increase Authorized Share Capital
- DSC Digital Signature Certificate
- MoA & AoA Copy of latest amended MoA and AoA
- Certificate Certificate of Incorporation
- PAN Copy of PAN Card of the Company
Types of Share Capital in Companies
Authorized capital
It is the maximum amount of capital a company may raise
Issued Capital
It is that part of authorized capital, which is issued to raise capital
Subscribed Capital
It is that part of issued capital, which is subscribed to be paid by the shareholders
Paid-up Capital
It is that part of capital, which is subscribed and paid to company by the shareholders
Register Online
Increase Authorized Share Capital in 3 Easy Steps
- Fill up the registration form
Select any package suits your requirement
Fill up the form which will take less than 10 minutes
Make payment through secure payment gateway.
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Consultation on Increasing Authorized Share Capital
Provide details and documents required for increase capital
Drafting of necessary documents
Drafting of change of clause related to capital in MoA
Sending the drafts for approval from applicants
- Receipt of signed documents from applicants
Filing Application for increase capital
Modification of MoA and AoA
Sharing updated MCA master data with increased capital
All it takes 7 – 9 working days*
*Subjected to Government Processing Time.
Process to Increase Authorized Share Capital
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Day 1- 2
Consultation on Increasing Authorized Share Capital
Collection of Information
Collection of Required Documents (Scanned Copies)
Review of Documents and Information provided
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Day 3 – 4
Drafting of documents including clause in MoA
Sending the documents to get signed from applicants
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Day 5
Receipt of signed documents from applicants
Preparation and filing of application for Increase Capital
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Day 6 – 9
Government Processing Time
Sharing of updated Master Data from MCA*
*Subjected to Government Processing Time
Enquiry
FAQ
Which approvals are required for increase in share capital of Private Limited Company?
The increase in capital shall receive following consent or approval:
- Consent from the Board;
- Consent from the members of the company; and
- Approval from concerned RoC.
Whether increase of capital is reflected on MCA portal?
Yes, the total authorized and paid-up capital is displayed on the Master Data of the company on the MCA portal.
When should the forms be filed with MCA?
The form must be filed within 30 days after obtaining consent from shareholders for the share capital increase. The resolution passed is notified in MGT-14 and notice of increase is filed in SH-7 with altered MoA and AoA.
How does the increase in capital impact the company in filing fee?
The Government fee for any e-form filed with MCA depends on the authorized capital of the company. With the increase in Authorised capital, the Government fee for online filing also increases, however to a nominal extent.