Loading...

Increase Authorized Capital

Increase Authorised Share Capital

Every business needs more money over time to run the business. The requirement of these funds may be on a long and short-term basis. A short-term requirement can be met by taking loans and advances. But in the race, the company will need more money. For a private limited company, this can be done by increasing the authorized capital of the company. Since the Private Limited Company is governed and regulated under the Companies Act, it is necessary to comply with the Act and Rules to make changes in the structure.

While registering a Private Limited Company, the authorized and paid-up capital is specified in the MoA of the company. Hence the company can issue fresh shares within the limit of authorized capital mentioned in the MoA. The MoA needs to be amended if the company wants to issue shares in excess of the specified limit.

What is authorized capital?

As per section 2(8) of the Companies Act, 2013 “authorized capital” is the capital that is authorized by a memorandum of the company to be the maximum amount of the share capital of the company.

The company can increase its business to the level of authorized capital. If the company has to expand the business by investing more money than before, then the company has to increase the authorized capital by following the steps mentioned in this article.

Every Business is Unique. Find Out How We Can Help Yours.

Contact Us

Our Pricing

How Company is Different?

Client Testimonials

It is always a pleasure to learn that the work we do has positively impacted our clients and that they are happy to share their experiences.

Get in Touch With Us

Through our technology solutions, we look forward to building long-term, sustainable partnerships with our clients, becoming their go-to IT troubleshooter. Have specific questions, or want a guided tour of our services? Get in touch with us!
WhatsApp
Mobile