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Change in Authorised Share Capital

 

Change of

Authorised capital

Every business require fund for smooth working of its business. There are two main sourceof funds on which every business depends. First, owned funds i.e. from internal source by way of infusing capital, once infused become the capital of the business and the other is borrowed funds i.e. taking loan from the banks and other financial institutions, which needs to be repaid along with interest thereon. Further, every company is authorized with a limit upto which they can issue and the same is known as Authorized share capital of a company. This is the maximum limit upto which a company can raise funds. In case the authorized limit gets exhausted, then the said limit can be increased with the approval of shareholder, by way of passing Ordinary resolution for alteration of its Memorandum of Association and increase its authorized share capital. Every such alteration shall be in effect only if registered and recorded by the Registrar of Companies (ROC). Therefore, before raising capital beyond the authorized capital, one has to raise it’s authorize capital and file necessary form so as to avoid hurdles in raising capital. Here, Complianceship, helps you to increase the Authorized Share Capital without any hassle.

What will you get in

  • Duly certified filled Form along with paidchallan
  • Minutes of the Board and General Meeting
  • Notice and explanatory statement, wherever required
  • Liasioning with the department
  • Free consultancy support
  • 24/7 Mail Support

Why

Complianceship?

  • Client Confidentiality
  • Faster processing
  • Easy access for assistance
  • MSME Registered
  • No Hidden Fee

Documents

required

  • Details up to which Authorised capital to be increased
  • Copy of MOA and AOA
  • Board resolution for notice of EGM of Company
  • Notice of EGM with explanatory statement
  • Certified true copy of the Resolution passed at EGM

Change in Capital

Frequently Asked Questions

Ans. No, there is no minimum authorized share capital requirement in a company. A company can be incorporated even with the authorise capital of 1000.
Ans. Authorized capital is the part of Memorandum of a Company. The fifth clause of the memorandum states the amount of the authorized capital of a company.
Ans. A Company is required to file SH-7 within a period of 30 days from the date of passing of ordinary resolution in the Extra ordinary general meeting (EGM).
Ans. a) Altered MOA; b) Altered AOA; c) Certified True copy of resolution passed at EGM d) Notice of EGM with explanatory Statement
Ans. There is no maximum share capital requirement in any company.
Ans. No, the Company cannot allot shares beyond the authorized capital. The Shares can be issued and allotted only within the limit of its authorized capital. Any issuance beyond the authorized capital will attract alteration of memorandum.
Ans. Yes, stamp duty is to be paid electronically with SH-7 for increase of authorized capital. The Stamp duty is paid on the amount so increased.