Authorized Capital Increase

Authorised Share Capital Increase:

Authorised share capital means the maximum amount of the share capital for which shares can be issued by the company to shareholders. At the time of company incorporation the authorized capital mentioned in the Memorandum of Association. The authorised capital can be increase by the company at any point of time after paying the fee to the ROC.

The Companies Act 2013 allows the companies to alter its authorised share capital with certain procedures which are governed by Section 61-64 of the Act along with Section 13 and 14 of the act which governs the alterations to the Chartered Documents being the Memorandum of Association and Articles of Association of the company.

Once the authorised share capital is increased, new shares can be issued to existing or new stakeholders and money raised shall be deposited in company’s bank account. It is always advisable to have higher authorised share capital, which may become paid-up share capital as and when required basis.

How to increase the Authorised Capital of the Company?

A. The Company Act 2013 allowed in section 61 the company can be increase the authorised capital any time if the necessary provision is allowed by the Articles of Association of the company.

B Extraordinary General Meeting should be called and ordinary resolutions pass for increase the authorised capital of the company.

C Forms submit to ROC within time frame after passing the ordinary resolution in EGM. The final forms should be file along with the

  • altered MOA & AOA,
  • Board resolution,
  • Board resolution for modification of capital clause of MOA
  • Shareholder resolution

FAQ

The minimum authorised capital is Rs 1 lac for the company.

Yes, the government will be charge the fee as per the

a. altered MOA & AOA,
b. Board resolution,
c. Board resolution for modification of capital clause of MOA
d. Shareholder resolution