Increase Your Company’s Authorized Capital from India’s Recommended CA Panel

Application for Increasing Authorised Capital

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What is an Authorized Capital for a Company? +

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

Benefits of Processing Capital Increase Process through Us +

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Why does a Company need to Increase its Authorized Capital? +

Following the incorporation procedure and continuing business operation, a company may need to increase the authorized capital for numerous reasons:

Expanding business
Preparation for new venture
Hiring new Resource / Expertise on the Board
Increasing number of Investors

FAQ

What is an Authorized Capital for a Company?

The capital which is authorized by the memorandum of the company to be the maximum amount of share capital of the company is called the Authorized Capital of the Company. It is required to be mentioned in the company’s MoA.

How can a Company increase its Authorized Capital?

A company can increase its Authorized Capital by initiating an amendment in its AoA (if needed). Consequently, the company needs to organize a Board Meeting to get approval from the Directors and the Shareholders.

Which Act of the Indian Govt. oversees the Increase in Authorized Capital process?

The procedure of Increase in Authorized Capital for a company is regulated by the Company Act, 2013 of the Indian Govt. along with the regulations of the Registrars of Companies (ROC).

Can the Company Directors approve the Increase in Authorized Capital decision alone?

Not really. The Directors can approve the same in a Board Meeting followed by the assent of the shareholders of the company.

How much time does it take to complete the Increase in Authorized Capital process?

It completely depends on how the company itself manages to conduct the essential steps like Board Meeting organizing, approval process from the Directors - Shareholders, etc. The legal process usually takes 7-10 working days of time to be completed.

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