The authorized capital of a company determines how many shares the company can issue to its shareholders. In order to issue new shares and/or to include more capital in the company, an increase in authorized capital may be required. The company’s initial authorized capital is mentioned in the Memorandum of Association of the company and usually Rs. 1 Lac. The authorized capital can be extended by the company with the approval of the shareholders and by paying an additional fee to the company registrar.
A proposal should be passed by the board of directors to initiate the process for an increase in authorized capital. In the Board Proposal, authorization should be provided to increase the company’s authorized capital and make necessary changes to the MoA and AOA of the company. eMindsCA.com can help you to increase your company’s authorized capital easily.
Due to an Increase in Authorized Capital
The authorized capital of a company determines the price and number of a share which the company can issue to its shareholders.
Paid up Capital
Payment of a share capital of a company is the amount for which the shares were issued to the shareholder for which the shareholder was paid.
The authorized capital of a company can be easily changed by paying additional government fees, as determined by the Ministry of Corporate Affairs.
Most promoters join their company with an authorized capital of Rs. 1 lakh or 10 lakhs, and issue shares of 1 lakh or less for founding members.
An increase in the authorized capital of a company should be approved by the company’s board of directors.
How do we help with Authorized Capital
eMindsCA.com can help you increase your company’s authorized capital.
Got the question Request a call from eMinds CA Business Advisor.
A business expert will review the current and proposed changes of the authorized capital and association of the articles to understand the company’s background before starting the process. The review will take 1 – 2 business days.
Once you get an understanding of the processes involved in enhancing the authorized capital, then our expert will draft the board proposals for the process.
Once the Board resolution is passed, our specialists will prepare necessary documents along with the Ministry of Corporate Affairs and will file.
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Outsourcing allows you to focus on your main business, not your support departments. Outsourcing gives your company access to a high level of expertise, where you will be able to spend normally.
Cost effectiveness– The salary of professionals is significantly lower than in North America and Europe. This wage turns into difference cost savings.
24/7 operation – Offshore development facilities located in India are in the perfect time zone to help you operate 24/7.
Large pool of talent– Retraining experienced staff becomes difficult when they are given boring and repetitive work. India offers you a cost effective talent pool that you can tap for reliable service delivery.
Best Practices– High focus on improvement in quality and continuous process, offshore development centers work on high level efficiency, forecast and reliability. High level maturity reduces risk and provides significant benefits while managing service level agreements.
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