Increase in Authorized Capital

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

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.

Raise Capital

The authorized capital of a company can be easily changed by paying additional government fees, as determined by the Ministry of Corporate Affairs.

Authorized Capital

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.

Board Approval

An increase in the authorized capital of a company should be approved by the company’s board of directors.

BASIC

all inclusive fees

Rs.4500
  • Increase in authorised capital of upto Rs.10 lakhs.
STANDARD

all inclusive fees

Rs.9500
  • Increase in authorised capital of upto Rs.25 lakhs.
PREMIUM

all inclusive fees

Rs.14500
  • Increase in authorised capital of upto Rs.100 lakhs.

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How do we help with Authorized Capital
eMindsCA.com can help you increase your company’s authorized capital.

Free Consultation
Got the question Request a call from eMinds CA Business Advisor.

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.

Board Resolution
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.

Filing
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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