Change Authorised Share Capital
This is necessary to improve the company’s fund-raising ability
Fee: Rs. 6000 (All Incl).
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Increase in Authorised Share Capital
A company can raise capital only as much as the authorised share capital mentioned in the MoA. If there is a need to increase the capital, the authorised capital can be increased anytime by paying an additional fee and stamp duty as per the prevailing norms. The share capital is part of company’s capital which is raised through issue of shares. It is important to note that a company can issue shares only as much as the authorised capital. To issue more shares the authorised share capital has to be increased. To enable this, there should be a board resolution for the same and an application filed with the MCA for these changes.
Documents required to increase authorised capital
THE PROCEDURE
Procedure for Increasing Authorised Share Capital
- Discussion for increase in capital & drafting the resolution.
- Preparing all relevant documents.
- Collect signatures on required documents.
- Filing of application & documents with MCA
- Check for updates on the procedure and Update master data of the company
FREQUENTLY ASKED QUESTIONS
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What is the procedure to increase in share capital of Private Limited Company?
It’s a 3 step process which involves consent from the board of directors, consent from the share holders of the company and approval from the Registrar of companies.
When can the forms be filed with MCA?
It is mandatory to file the forms within 30 days of the approval by the share holders. The MoA and AoA have to be altered with these changed and relevant forms filed to update the same with the MCA.
Will this change reflect on the MCA portal?
The Paid Up Capital and Authorised capital are displayed on the MCA portal. All information pertaining to the company will be available in the Master Data of the company on the portal.
Does the increase in capital impact the filing fee?
The government fee is based on the authorised capital. There is a nominal increase in fee. Not very significant.
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