Authorized Share Capital

Increasing Authorized Share Capital

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More About Increasing Authorized Share Capital

About Increasing Authorised Share Capital?

Authorized share capital is a part of the capital structure of the company. Share capital can increase through the issue of share to the extent of the authorized share capital which is mention on the memorandum of the association clause. So issue more number of share to increase capital beyond the authorized capital it must need to amendment in the memorandum of association clause of authorized share capital. For the amendment in the clause of memorandum of association need to conduct board meeting and shareholder meeting for the approval.

Why Increasing Authorised Share Capital?

  • For the issues of new shares
  • For the increasing Borrowing capacity
  • For the Business Expansion

Important Point to be considered while Increasing Authorised Share capital

  • Required Amendment in MOA
  • Its may Required amendment in AOA
  • Required to Pay registration fees
  • required to pay stamp duty
  • Board meeting and General Meeting required to conduct.

FAQ on Increasing Authorized Share Capital

Is this required to compulsion to inform ROC ?

Yes, The form must be filed within 30 days after obtaining consent from shareholders for the share capital increase. The resolution passed is notified in MGT-14 and notice of increase is filed in SH-7 with altered MoA and AoA.

What Kind of Government Fees have to pay for Increasing Authorised Share Capital?
  • Have to pay Filling Fees
  • Have to pay MOA registration Fees based on Authorised Share capital
  • have to Pay Stamp duty based on Authorised Share Capital

(Previously paid amount on Authorised Share capital have been Deduct) 

What Kind of Process has to follow for Increasing Authorised Share capital?
  • Conduct Board Meeting
  • Conduct General meeting

If, Shorter notice for board meeting and/or General Meeting that Consent for the Board of Directors / Shareholder required.

Required Documents for Increasing Authorised Share capital

Minimum Requirements

  • Company PAN Card
  • Certification of Incorporation (COI), MOA and AOA
  • Current List of Shareholding
  • List of Current Directors
  • Digital Signature of Director
  • Earlier Stamp duty paid Challan and Forms

Specific Requirements

  • Information of Increasing Authorised Share Capital From amount to amount.
  • Object for Increasing Authorised Share capital.

Points to make your decision easy

Step Involved in Increasing Authorized Share Capital

STEPS & TIME DURATION
1

Day 1

  • Discussion between LeglBoss Team & the Promoters/Directors of the Company.
  • Drafting necessary Documents and resolutions 

2

Day 2-3

  • Signing of Required Documents.
  • Preparation for ROC forms for Changes

3

Day 3-5

  • Filling of Forms and Documents with ROC
  • Paying Registration Fees and Stamp duty

4

Day 5 onward

  • ROC processing Time / Approval Time
  • Send Approval Letter with New Amendment MOA and AOA