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Increase in Authorized Capital refers to the process of increasing the maximum amount of capital that a company is authorized to issue to its shareholders. The authorized capital of a company is the maximum amount of capital that it can raise by issuing shares to its shareholders. It is stated in the company’s Memorandum of Association (MoA) and Articles of Association (AoA).Increasing the authorized capital does not mean that the company is immediately raising additional capital or issuing new shares.
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The authorized capital is the maximum amount of capital which can be raised by a Company through the issue of shares to its shareholders. An increase in authorized capital might be required for issuing new shares and/or inducing more capital into the Company. Our professional can help you concerning the filing and issuing of shares concerning the increase in the authorized share capital of the Company.
Authorized Capital is mentioned in the capital clause of the Memorandum of Association of the company. And if the company wants more capital then, the capital clause has to be amended by the members by passing a special or ordinary resolution (as there is no specification about nature of resolution under S. 61) as per S. 61 of the Companies Act, 2013 at a meeting. Following are the pre-requisite before filing an application to MCA for an increase in the authorized capital:
• Check/verify whether AoA provides for an increase in authorized capital. If it does not provide then the same must be amended to the effect under section 14 of the Companies Act, 2013 by passing a special resolution.
• A board meeting for notifying the call for Extraordinary meeting (EGM) must be held.
• An ordinary or special resolution (preferably Special resolution) for an increase in authorized capital i.e. for alterations in MoA & AoA must be passed in such EGM.
After fulfilling the above pre-requisite, file the prescribed form i.e. e-Form SH-7 with the registrar within 30 days of passing of the ordinary resolution. Following documents must be attached:
• Board Resolution for an increase in authorized share capital.
• Board resolution for modification in the capital clause of MoA.
• Shareholder’s resolution passed in EGM.
• Altered copy of MoA & AoA.
Step 1: Documentation: Once you have gone through the stage of passing requisite resolutions in the Board meeting & EGM and, provided the required Information and Documents for further processing, we will prepare the requisite documentation.
Step 2: Increased Authorised capital: Once the documentation is done and verified by the Legal Suvidha Expert, we will e-sign and file the requisite forms, and the Authorised Capital of your business is increased after the approval of RoC.
1. Board resolution for notice of EGM of the Company.
2. Notice of Extraordinary General Meeting
3. Ordinary Resolution.
4. Altered Memorandum and Articles of the Company.
The Authorized Share Capital has to be minimum Rs. 1 Lac and there is no minimum limit for Paid-up Share Capital.
The Authorized Capital of the Company is the maximum limit up to which a company can issue shares and Paid Up Capital is that part of the Authorized Capital for which Shareholders have invested in the Company.
MOA, AOA, documents for Board Meeting of the Company and documents for Extra-Ordinary General Meeting (EGM) of the Company.
The time limit is 30 days from passing of the Board Resolution for Increasing of Authorized Share Capital.
A company can increase its authorized capital by filing Form SH-7 within 30 days from the date of passing the resolution i.e. from the date of alteration.
Yes, Holding of AGM is mandatory to increase authorized share capital.
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Rajesh Khurana2025-06-20Trustindex verifies that the original source of the review is Google. I recently got my trademark registered through Legal Suvidha, and I must say the experience was absolutely seamless. The team was proactive in updating me about every stage of the TM application process and patiently answered all my queries. Highly recommended to any startup or business owner looking for reliable legal and compliance support. Mayuresh Tiwari2025-05-30Trustindex verifies that the original source of the review is Google. I’ve been working with this firm for the past 3 years, and I couldn’t be more satisfied with their services. Their team has consistently provided accurate, timely, and dependable financial and compliance support. A special thanks to Priyanka and Mayank for their dedication, professionalism, and personal attention to every detail. Highly recommended for anyone looking for reliable services! Anjesh s2025-05-26Trustindex verifies that the original source of the review is Google. I've been working with Priyanka and her team at Legal Suvidha for the past 5 years for my LLP, Adornfx Multimedia. They've consistently provided excellent support, especially with ROC filings. Their service is reliable, timely, and hassle-free. Highly recommended! Ravi Kumar2025-05-26Trustindex verifies that the original source of the review is Google. I am delighted to share my experience with Legal Suvidha Firm, where professionalism and dedication shine through in every interaction. Having worked with them for the past 3-4 years, I can confidently say that their team is truly exceptional. The commitment they show to their work is truly commendable; they deliver on every promise made without any hint of fraud or dishonesty, which unfortunately is not the case with many firms in the market today. Their integrity sets them apart and gives clients the peace of mind they need when it comes to legal matters or any other certifications. Moreover, I have found their pricing to be very reasonable and reflect the quality of services provided. They offer excellent value for money, ensuring that their clients receive top-notch legal services without breaking the bank. I highly recommend Legal Suvidha Legal Firm without any hesitation. If you’re looking for a reliable legal partner with a dedicated team that truly cares, look no further than Legal Suvidha. My experience has been nothing short of excellent, and I am confident that others will feel the same! For Talin Remedies Pvt Ltd Ravi Kumar Pratik Jain2025-05-22Trustindex verifies that the original source of the review is Google. One of the easiest firms to work with. Soft-spoken, well aware of their scope of work, and the most affordable (especially for new comers). They're always available to help out giving solutions in the easiest way possible. Got their number from a mentor, and would highly recommend their services if you're looking to start and manage accountancy/compliance related work for your firm! Shweta Patel2025-04-07Trustindex verifies that the original source of the review is Google. Mayank & the Legal Suvidha team are fantastic. They really try to understand the business like insiders and don't give you templatized solutions. The staff are extremely supportive and go out of their way to help you. I would recommend Mayank to anybody new to the startup ecosystem!Verified by TrustindexTrustindex verified badge is the Universal Symbol of Trust. Only the greatest companies can get the verified badge who has a review score above 4.5, based on customer reviews over the past 12 months. Read more
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Here are some answers to potential questions that may arise as you start your business.
Register your business, obtain necessary licenses, and fulfill tax obligations.
Consider factors like ownership, liability, and tax implications to choose from options like sole proprietorship, partnership, or company registration.
Choose a unique business name, obtain required IDs like Director Identification Number (DIN), and file incorporation documents with the Registrar of Companies (ROC).
Obtain GST registration, trade licenses, and any industry-specific permits required to operate legally.
Maintain accurate financial records, file tax returns on time, and adhere to the tax laws applicable to your business.
Yes, startups in India can benefit from various government schemes offering tax exemptions, funding support, and incubation facilities.
Secure patents, trademarks, or copyrights to safeguard your intellectual assets from infringement or unauthorized use.
Challenges include navigating bureaucratic hurdles, complying with complex regulations, and competing in a crowded marketplace.
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