Increase Authorized Capital

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Frequently Asked Qustion

When should the forms be filed with MCA?
Whether increase of capital is reflected on MCA portal?
How does the increase in capital impact the company in filing fee?
Whether package includes increase in paid-up share capital, too?

Increase Authorised Capital

The share capital is that part of a company’s equity which has been raised by issuing shares and selling them to stockholders in exchange for capital (cash or other considerations). In order to maintain financial decorum, the government stipulates that no company can indiscriminately issue shares for the purpose of raising capital. To that effect, authorised share capital is the maximum value of share capital that the company is legally authorised to issue to shareholders.

A resolution must be passed by the company directors to increase the authorised capital.Sujata associates helps you with increasing authorised capital in lowest rate out there.

Process of increasing authorised capital

Step 1- Verifying approval within the Articles of Association

Step 2- Board meeting to notify the incidence of EGM

Step 3- Extraordinary General Meeting

Step 4- ROC Form documenting


Reasons to Increase Authorised Capital Company

Paid-up Capital

Paid up share capital of a company is the amount of money for which shares were issued to the shareholder for which payment was made by the shareholder.

Authorised Capital

The authorised capital of a Company determines the value and number of shares a Company can issue to its shareholders.

Increase Capital

The authorised capital of a company can be easily changed by paying additional government fee, as prescribed by the Ministry of Corporate Affairs.

Board Approvale

The increase in authorised capital of a Company, must be approved by the Board of Directors of the Company.


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