preloader

Change in Private Ltd Company - Increased Authorized Capital

Alteration in Authorized Share Capital

An increase in paid-up or authorized capital must be done with proper resolution from the board and by filing of forms with the Registrar of Companies. Eazy Startup facilitates filing for Alteration of Authorized share capital. Starting from Rs.4899/-

The maximum amount of capital which a company can generate via issue of shares to its shareholders is called Authorized Capital. Depending on the requirement, Authorized Capital can be changed with any of the following means.

  • In-order to make a fresh issue, it increases its share capital.
  • Shares of larger denomination will be formed by amalgamation and division of all or any of its share capital.
  • Shares of smaller denomination will be formed by subdivision of all or any of its share capital.

If the Company intends to alter its authorized capital with any of the above said manner then it is mandatory to amend the Share Capital clause in the Memorandum of Association of the Company.

PROCESS

Advisory

Eazy Startup is the group of highly qualified CA, CS and business advisors which will help and provide complete guidance and procedure in due compliance with the provisions of Companies Act, 2013 for alteration of Authorized Capital and MOA of the Company along with other relevant forms applicable for the company.

Documentation

Once you obtain an understanding of the procedures involved for your Company, our Eazy Startup advisors shall draft and provide draft of the necessary documents required to be filed with ROC.

Filing

Eazy Startup advisors will help in filing of necessary e-forms for alteration of Authorized Capital and alteration of MOA of the Company.


FAQ'S

Q: What are the benefits of increasing the authorized capital?

  • Increasing the authorized capital is the only way where, a company can raise the share capital beyond the prescribed capital in MOA which will have a positive effect on the overall company’s share capital. 
  • There will be an increase in the company’s overall net worth, as there is an increase in the share capital which in turn results in boosting borrowing capacity of the company.

Q: What is the process to issue new shares to increase the authorized share capital of the company?

A: If the company decides to provide new shares to existing promoters to increase the authorised capital, then they should call all the shareholders for a board meeting and file form PAS-3 with registrar of companies to state about the issue of new shares. If the company decides to issue new shares to the new shareholders then a valuation report should be obtained from a certified chartered accountant.

Q: Documents required for increasing the authorized share capital.

A: Within 30 days after attaining the consent from boards for increasing the authorized share capital, required documents should be filed with the MCA. MGT-14 and SH-7 are filed to notify resolution passed and increase of share capital respectively. The mandatory documents are DSC of any authorized director of the company, MOA, AOA, Certificate of incorporation and PAN card.

Q: How long it will take to increase the authorized share capital?

A: We at EazyStartup help you to increase your authorized capital in 25-30 days.