The share capital of a company is a part of capital which is raised through issue of shares. A company can raise the capital up to the limit of authorized share capital, which is prescribed in the Memorandum of Association. A company can increase the Authorized Share Capital at any time after incorporation by payment of additional fee and stamp duty. To modify the clause related to Authorized Share Capital at Memorandum of Association, company has to conduct a board meeting and pass a resolution for modify authorized share capital. Clause at the MoA has to be change accommodating the change in Authorized Share Capital and the same should be approved from Ministry of Corporate Affairs.
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 Less
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 Less
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 Less
Digital Signature Certificate
Copy of latest amended MoA and AoA
Certificate of Incorporation
Copy of PAN Card of the Company
It is the maximum amount of capital a company may raise
It is that part of authorized 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
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Sharing updated MCA master data with increased capital
All it takes 7 – 9 working days*
*Subjected to Government Processing Time.
