Increase Authorized Capital
A Registered Company can issue new equity shares by increasing its Authorized Capital.
Digital Filings can help you in…:
Determining and suggesting appropriate changes in Authorized capital
Drafting the Board Resolutions
Obtaining approval from the Ministry of Corporate Affairs (MCA)
Talk to an Advisor Now!
Share your details
Understanding Increase in Authorized Capital
The number of equity shares that can be issued to shareholders depends on the Authorized Capital of the company and in order to increase the number of equity shares the company needs to increase its Authorized Capital and pay the prescribed registration fees to the Registrar of Companies.
The authorized capital paid by the Company at the start of its operations is disclosed in the Memorandum of Association (MOA), while in most of the cases the initial authorized capital of a company is INR 1 Lakh.
A company can increase its authorized capital by notifying the matter to the Board of Directors and drafting a resolution on the same. On receiving approval, the company can make the desired changes in MOA and Articles of Association (AOA) of the company.
Key-Elements of Increase Authorized Capital
If a Company decides to increase authorized capital and issue new shares to existing promoters, a board meeting is called upon and a Form PAS – 3 needs to be duly filed with the Registrar of Companies (RoC), intimating the allotment of shares.
It gets quite complicated when a Company decides to increase authorized capital by issuing shares to new shareholders. The process necessitates the Company to generate a valuation report from a registered Chartered Accountant.
Required Documentation Chart
- MOA and AOA in word format
- Complete list of existing Board Members and Shareholders
- Proposed Capital of the Company (along with types)
- Digital Signature of Authorized Director
- Letterheads along with rubber stamp of existing Directors
We are Glad to Help!
Authorized Capital of a company can be easily altered by paying required Government Fee, as prescribed by the MCA, while the process also requires an approval from Company’s Board Directors.
Trained Partners @ Digital Filings can effectively assist a Company in increasing its authorized capital.
- Increase in Authorized Capital of up-to INR 10 Lacs
- (Above price includes all taxes and relevant government fees.)
- Increase in Authorized Capital of up-to INR 25 Lacs (Above price includes all taxes and relevant government fees.)
- Increase in Authorized Capital of up-to INR 100 Lacs (Above price includes all taxes and relevant government fees.)
How we Do It…
A Registered Company is obliged to increase its Authorized Capital in order to issue new shares. Digital Filings can help Companies in making desirable changes in MOA and AOA to accomplish their objective.
Quick Glance in Past
Partners @ Digital Filings will carefully study the Company’s AOA in order to understand the initial and proposed changes made in authorized capital. The expert would take around two days for a detail analysis of the documents before initiating the process.
Approval on Proposed Alteration
The new proposed limit of authorized capital is to be finalized in a meeting with Board Directors. A notice is also sent to the existing Directors stating the agenda of the meeting. Digital Filings Expert will assist you in drafting the proposed resolution and would follow the prescribed SS – 1 format for the convention of Board Meeting (as instructed by Institute of Company Secretaries of India / ICSI).
An Extraordinary General Meeting (EGM) is conducted in order to attain the approval from existing shareholders for increase in Authorized Capital. Also, in order to take the process further, it is obligatory to obtain the consent from more than 75% of shareholders. Experts @ Digital Filings suggest Companies to notify their intentions at least 21 days prior to EGM.
You are Future Ready Now!
Once the special resolution is passed by shareholders, Team @ Digital Filings will submit the required documents along with the prescribed Form SH – 7 to the concerned authority for the final screening and here the Company is all set to increase its authorized capital.
Our Patrons’ Speak
“Heartfelt thank you for proficiently taking care of all the registration related tasks and letting me focus on my business operation without any stress.”
“Highly impressed by the personal attention of the professional staff in getting the GST registration done and arranging the MSME certification for my business.”
“Thank you Digital Filings for all your professional and timely support in getting my company registered.”
– Sachin Gupta
“I never thought it would be so easy to get my proprietorship firm registered. Thank you team Digital Filings. I will refer your proficient services to my friends too.”
“Thank you for simplifying the so complicated filing and documentation and getting my business smoothly registered.”
Every Partner at Digital Filings is Focused...
...to Provide a Comprehensive Legal Assistance Mechanism...
...Diligently Customized for Emerging Entrepreneurs!
We at a Glance...
Digital Filings is a leading business and legal services provider in India, assisting entrepreneurs in effectively and economically setting-up and managing their venture. Digital Filings consistently ensures that your venture is always compliant, so you can efficiently focus on making your business ascend.
Our strong network of proficient partners thoroughly understands the business specific regulatory/legal requirements and is focused to assist business owners at every stage of their venture.
Our panel of competent professionals, including Chartered Accountants, Company Secretaries, Lawyers, Cost Accountants, Chartered Engineers, Financial Gurus, and Business Experts are just a call away to gladly serve you.
Book your appointment Today!
Be our guest to browse the Knowledge Arena by Digital Filings and widen your knowledge-base.
Digital Filings always strive to enhance the understanding of our patrons on the Nation's consistently modifying compliance environment. Our well-informed team of partners has diligently compiled numerous articles, guides, videos, and much more that you can browse anytime at your ease.
Experts at Digital Filings can proficiently help in registering your sole proprietorship firm, either by getting you a GST / VAT Number, Service / Professional Tax Registration, a Shops & Establishments Act Registration, a Micro, Small & Medium Enterprises (MSME) Registration, or an Import-Export Code.
The team of well-informed professionals at Digital Filings is just a phone call away to address every concern / query about the registration of your sole proprietorship venture. We will, however, put our best to make sure that all your questions are well-answered even before they strike in your mind.
Experts at Digital Filings precisely understand all of your requirements and strive to ensure that all the desired documents are in place so that you can effectively align yourself with every legal / administrative interaction. We will also provide you complete clarity on the process to set genuine expectations.