Increase In Capital

Get Started By paying Rs. 6,000/-



    Introduction

    When the Company issues shares to its Members in lieu of the funds received that Capital is known as share capital. A company can only raise its capital to the extent of its Authorized Share Capital mentioned in the Memorandum of the company. Further, if the Company raises its Authorized Share Capital any time after its incorporation by payment of fee and stamp duty. A Company can only issue shares to the extent of its Authorized Share Capital

    In a general context an authorized Share Capital means the maximum amount of share capital which a Company can allocate to its shareholders during its life as authorized by its constitutional documents. It can be altered with the permission of the Members of the Company.

    Sprinthub Solutions can help you with the increase of Authorized Share Capital of the Company just by following certain steps by providing the best assistance, timely delivery and guaranteeing the highest customer satisfaction You may get in touch with our team on 096436-69475 or email info@sprinthub.in

    Need for Increase in the Authorized Share Capital

    For issue of Further Capital:-
    For issuing more capital it cannot raise capital beyond the amount prescribed in the Memorandum of Association. Therefore, in case the need arises to increase the paid-up capital the Authorized Share Capital must be increased.
    Increase in the borrowing capacity:-
    Increasing the Authorized Share Capital of the Company helps in increasing the internal funding capacity which supports the borrowing capacity of the company. Higher the capital the higher the net worth.

    Documents Required

    Feature Box Image
    Digital Signature Certificate
    of the one of the Authorized Director;
    01
    Feature Box Image
    Copy of the latest Memorandum of Association and Articles of Association of the Company
    02

    Types of Share Capital in the Companies

    Authorized Share Capital Issued CapitalSubscribed CapitalPaid-up Capital
    It is the maximum amount of capital which a company may raise during its lifetime.It is part of the authorized share capital which is issued to raise capital.It is part of issued capital which is subscribed by the Members to be paid to the Company.It is the part of capital which is subscribed and paid to the Company by the Members.

    Process of Increase in the Authorized Capital of the Company

    01
    Complete the Application Form
    You are requested to first fill the simple questionnaire provided by our expert team which will enable us to know the case of increase in the Authorized Share Capital of the Company.
    03
    Conducting the Board Meeting and passing the necessary Board Resolution
    After arranging the documents we will begin with the drafting of Board Resolution (if not passed ) for increasing the Authorized Share Capital of the Company
    02
    Document Processing
    At the second step you will be required to produce the documents in accordance with the questionnaire filled based upon which case will be dealt so that we can arrange them as per the requirement and for further processing.
    04
    Conducting the Members of the Meeting
    The approval of Members will be accorded through convening of a Meeting and to pass necessary resolutions for increasing the Authorized Share Capital of the Company which shall be filed with the ROC in respective e-form SH-7 along with the requisite MCA fees and stamp duty.
    05
    Approval from the Ministry of Corporate Affairs
    Lastly, after the approval of an application is received from the ROC which will be provided through e-mail which signifies that the respective changes in the Authorized Share Capital and the same shall be updated on the portal of MCA.

    Increase Capital of Company starting from ₹ 6000/-

    Professional Consultation
    Filing of E-Forms with ROC
    Drafting of Documents
    Preparation and Filing of Application

    How to Increase the Share Capital of the Company?

    There is a process to be followed for increasing the authorized share capital of the company. We need to follow the same in order to fulfill the compliances.

    Check whether the Articles of Association contains the provision for increase of authorized capital. If not then alter the articles
    Hold an EOGM on a specified date and time and take the approval of the shareholder by way of an ordinary resolution and alter the MOA of the company.
    Call a Board Meeting by giving notice of not less than 7 days for proposing the matter of alteration of share capital and issue the notice of EOGM.
    File the respective form SH-7 within 30 days from the date of passing of the ordinary resolution for increasing the share capital.