INCREASE IN AUTHORISED CAPITAL
Get Authorised Capital increased @ Rs 3999 (Professional fee)
- Documentation as per the Companies act 2013
- E-forms filing with the MCA
- Time required: 3-4 working days
- Dedicated Account manager
- 100% Online Process
WHAT IS INCREASE IN AUTHORISED CAPITAL?
The authorised capital is the maximum share capital of the company which sets limits within which the shares are issued by the company. When a company intends to increase its share capital by further issue of share capital which is beyond the authorised capital of the company, then before making such an allotment, an increase in authorised capital is initiated.
The Articles of Association of the company must not restrict such amendments and should have the necessary power or authority to increase authorised share capital. In the absence of it, the Articles of Association will have to be amended as per the provision of Section 14 of the Companies Act, 2013. Approval from the shareholders in the general meeting is required.
Approval of the Shareholders together with the altered copy of Memorandum of Association depicting the increased amount of Authorised Share Capital is filed with ROC in e-form SH-7. you can check the applicable govt fee on the MCA website. Government fees for an increase in authorised capital are bifurcated into three parts:
1.Normal fees: Depends upon the existing Share Capital of the Company.
2.MOA registration fees: Depends upon existing share capital and type of Company.
3.Stamp duty: As per the stamp act applicable on the respective state in which the registered office of the Company is situated.
FEATURES
Increases capacity to raise capital
It increases the capacity of the company to raise more capital. An increased capital may help the business to expand.
Loan Preference
A company with higher authorised capital gets preference in getting loans. Increased capital results in higher net worth, thereby increasing the borrowing capacity.
Requirements
- Article of association of the Company must not restrict such amendment or else the same need to be amended.
- The amount of authorised capital expected to increase.
The class of shares with which the authorised is required to be increased.
Process for Increase in Authorised Capital
- 1
Holding of BM
Holding and convening the BM to approve the increase in authorised capital and fix date, time, and place for holding EGM for shareholders’ approval.
- 2
Holding of EGM
Convening EGM to pass an ordinary resolution for an increase in authorised capital and alteration of MOA in its capital clause.
- 3
Alteration of MOA
The documents as required to be prepared for filing the form for the alteration of MOA.
- 4
Filing of Form
Form SH 7 is required to be filed with ROC for getting the capital altered.
customer stories
Bhanu has been working for Unifii for the last 1.5 years and as our accountant and Legal advisor. His knowledge and attention to detail have aided in keeping our company on track during recent times and through a major restructure. I feel confident in recommending Bhanu's and his team's professional services. He is not only thorough but also easy to work with and always willing to take the time to discuss my concerns and respond to questions.
Harneet Singh
Sydney, New South Wales, Australia
He is proactive, result oriented, and a responsible person. He is always ready to put all his energy and time to get the work done in the best possible manner. Bhanu is a well connected professional that always takes the time to support anyone is his network. I wish him all the best.
Smriti Anand
Extremely professional, time oriented and supportive are three words that goes perfectly well for Bhanu. He is my go to person for all accounting queries and requirements. I strongly recommend his professional services to all. Besides he is a great human being to know.
Sarita Chauhan
Chairman & Director Farsighters Network and Communications Pvt Ltd
I've worked closely with Bhanu. He is a very thorough and confident person. He knows his work well and tries to improvise in everything. Wish you luck Bhanu!
Harcharan Singh
Chartered Accountant UAE
Bhanu is a person to count upon, with his expertise in his domain and knowledge he brings on you can reach him with a problem any time. His appetite to listen and understand the issue makes him the man for the job. He is proactive, energetic and a resourceful guy. My best wishes to Bhanu and Provenience for future endeavour.
Ashwani Soni
Founder, Addensure Media LLP
Provenience is perfect to partner with in your startup or corporate journey. Seamless service and support provided by team is really helpful specially when you are trying to setup your venture. I would like recommend Provenience to every startup.
Amit Tyagi
Founder, Onmytap- NETWORK FOR PROFESSIONAL GROWTH
Bhanu is one of the most sincere and trustworthy person I have come across. He is extremely ethical and is completely customer focused. His hard work and dedication is commendable and with him handling the legal as well as taxation things are always in order and compliant. Keep up the good work Bhanu. Wishing you more and more success as you grow.
Kiranjeet Kaur
Co-founder, Executive - Brightsandz Clean Tech Pvt Ltd
Price
Frequently Asked Questions (FAQs)
Authorised capital is a maximum share capital of the company which sets limit within which the shares are issued by the company.
The Ordinary Resolution in General Meeting is required to be passed for increasing the authorised share capital.
A. Form SH 7 is required to be filed with the resolution passed in general meeting and amended MOA within 30 days of passing the resolution.
Yes, the increase in authorised capital will be reflected in the Master Data of the company on the MCA portal.
The fees that is required to be paid will depend on the paid-up capital of the company.
Shareholders of the company with the majority voting rights have the power to increase the authorised share capital of the company.
It refers to that part of the authorised capital that is unissued. The total of issued and unissued capital should add-up to the authorised capital.
It is not mandatory to allot shares when the authorised capital is increased. The company has the power to keep capital unissued.
