Paid up Share capital

Increasing Paid up Share capital

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Starter Plan : Rs. 2599.00
    • Documents Preparation   
    • Increasing Paid up capital up to Rs. 25 Lakh (For Right Issue)
    • Filling of Forms
    • ROC fees Excluded and have pay on actual basis.
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More About Increasing Paid up Share capital

About:

Paid up 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 paid up Share Capital:

  • For the issues of new shares
  • For the increasing Borrowing capacity
  • For the Business Expansion
  • Raising capital without diluting their control.
  • Preventing hostile takeover

Important Point to be considered while Increasing paid up Share Capital:

  • Its may Required amendment in MOA & AOA.
  • Required to pay stamp duty on issue of Share certificate.
  • Board meeting and/or General Meeting required to conduct.
  • Decide Method of Issuing Capital like: Right Issue/Private Placement/Preferential Issue/Sweat Equity/Bonus Issue etc...
  • It may required to open Separate bank Account.

FAQ on Increasing Paid up Share Capital

Required Documents for Increasing Paid up 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

Specific Requirements

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

Increasing Paid-up Share capital by way of

Points to make your decision easy
Issue of Bonus Share

Bonus Shares are shares given to the existing shareholders in proportion to the number of shares they hold. While Issue of Bonus Shares increases the total number of shares issued and owned, it does not increase the value of the Company, the ratio of number of shares held by each shareholder remains constant.

Preferential Basis Offer

In that Company offer securities to the preferential basis to the selected group of people or venture capitalists, companies, or any other person by any particular company for fund raising. In that a valuation report of registered value determining the price of shares is also mandatory.

Private Placement

In that company offer of securities or invitation of subscribe securities shall not made more than 200 person in the aggregated in financial year but but excluding qualified institutional buyers and employees of the company being offered securities. The invitation / offer per person investment size not less than Rs. 20,000 of face value except non banking and housing finance company.

Right Issue

In that Company offer to the existing shareholder to get additional shares in proportion to their existing share holding. Existing shareholder getting new/fresh share at discounted price compare to the market  price on stated future date. The right issue offer is made to the existing shareholders and not to the general public. It is the right of the existing shareholder and not an obligation to buy the additional shares. The rights can be transferred or sold if the existing shareholder is not interested in accepting the offer.

Sweat Equity Share

In that company offer securities to its permanent employee (Director, Employee) at a discount price or considered other than cash.  permanent employee who has been working in company at least one year in India or outside India (Including subsidiary, in India or outside India, or of a holding company of the company).

Step Involved in Increasing Paid up Share Capital

STEPS & TIME DURATION
1

Day 1-2

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

2

Day 10-15

  • Filling of Forms and Documents with ROC
  • Paying ROC Fees

3

Day 15 Onward

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

4

Day 3 -10

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