Increase in Authorized Capital
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For a company, authorized capital is the edge up to which the company is allowed to issue its shares and raise capital. If the company has to issue shares above the specified limit then it has to first increase its authorized capital. The cap of authorized capital is mentioned in the MOA of the company. Hence, first, the MOA must be changed to alter the capital clause. The company needs approval from the members to alter the capital clause of the MOA. Hence, the due process must be followed to increase the authorized capital as specified under the law.
Wisefilings is here to guide you with the complete procedure to increase the authorized share capital of a company. It will keep you compliant and away from the penalties levied by MCA. Be Wise Be Compliant!
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Registration
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Plans of Increase in Authorized Capital
Plus
(Increased share capital up to Rs.5 Lakh)
- Drafting of documents
- Filing of necessary forms
- Change in Capital on MCA database
- Updated Master data of company
Pro
(Increased share capital up to Rs.10 Lakh)
- Drafting of documents
- Filing of necessary forms
- Change in Capital on MCA database
- Updated Master data of company
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Simple solutions for Increase in Authorized Capital
Process
- Collection of information and documents
- Drafting of documents
- Amendmentin MOA
- Filing form with MCA
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Increase in Authorized Capital
A company cannot increase share capital on its own. It needs approval from the concerned ROC; hence the forms for increasing share capital must be filed with the MCA.
Yes, the additional stamp duty is levied on the amount of the increased capital.
Once the forms are approved, it will reflect in the company’s master data on MCA.
The form for an increase in authorized share capital must be filed in 30 days from the date of resolution.
There is a different process for allotment of shares, after increasing share capital the company has to pass a resolution for the allotment of shares and file the form with MCA.
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