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Increase in Authorized Share Capital

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Increase Authorized Share Capital with EAdvisors.

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Drafting of Application

Drafting of form, notice and other necessary documents shall be drafted by the team of EAdvisors.

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We at EAdvisors commit to work with quality and in the minimum time possible. You will get your authorized share capital increased within 2 days itself. 

Increase in Authorised Share Capital
Increase in Authorized Share Capital

INTRODUCTION

To run the business and to grow it eventually, it required funds. The business can opt for buying loans but, that would be a solution for a short term. A Private Limited Company, having perpetual succession as its feature would not be able to run effectively with short-term option. Therefore, a private limited company requiring funds can go for opting long-term option i.e. by increasing the share capital of the company.

Authorized Share Capital shall be increased in order to get more funds. However, as the company is governed by the Companies Act, 2013, it is necessary to follow the rules mentioned under the Act.

As per Section 2(8) of the Companies Act, 2013 “Authorized Capital” is the capital specified in the Memorandum of Association under the Capital Clause.

PROCESS

To increase the authorized share capital of the company, here are some compliances that need to be complied with to increase the authorized share capital of the company.

  1. To begin with, it is important to check whether the AOA allows the company to increase the authorized share capital or not. AOA i.e. the Article of Association, being the most important document of the company must contain the provision referring to increasing the authorized share capital of the company only then, a company can make an alteration. Most of the company’s AOA contains the provision for increasing the authorized share capital of the company but not all. SO, at the first step before proceeding to increase the authorized share capital of the company, it is necessary to see and verify in AOA.
  2.  In addition to it, conducting a board meeting is required to be held by the company after sending a notice to Directors for increasing the authorized capital.    A board meeting is necessary to conduct to obtain approval from the Board of Directors for increasing the authorized capital.
    After the board meeting is held where the Board of Directors (BOD) has given the approval, a specific day shall be decided for convening an Extra Ordinary General Meeting (EGM) to get approval from the shareholders of the company for increasing the authorized capital and making changes to the MOA of the company.
    And after conducting EGM, again obtain approval from BOD and the Company Secretary who is present in the meeting to present the notice of Extra Ordinary General Meeting to shareholders. Basing the approval, the notice of extraordinary general meeting should be presented to all the shareholders, directors and auditors of the company.
  3. Furthermore, passing the ordinary resolution at the Extra Ordinary General Meeting to obtain approval from the shareholders to increase the share capital of the company.
  4. Second last step is, filing of form SH-7 after the ordinary resolution is passed at EGM. Form SH-7 is required to be filed within 30 days of passing the resolution and some necessary documents must be attached along with form SH-7, namely: –
  • Notice stating conducting Extra Ordinary General Meeting
  • Authorized true copy of the ordinary resolution
  • The changed Memorandum of Association(depicting increase in authorized capital)
    Where all the compliance are in accordance with the Companies Act 2013, then the registrar i.e. the ROC would approve the filing and will allow the company to increase its authorized capital of the company.

5. In Conclusion, once the authorized capital is increased then, the paid up capital can also be increased by issuing the fresh equity shares.

WHY EADVISORS

EAdvisors help you to increase you company’s authorized capital in just two days. All you have to do is provide us documents through email or WhatsApp . We will assist you in the best possible manner.

Trusting us you will be getting the best of services.

 

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We at EAdvisors are here with our professional services and experts to serve you. We have successfully satisfied our clients with their requirements since a long time and will continue it all time. EAdvisors has 99 % of customer retention ratio.

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To provide constant support to our customers, we are available on WhatsApp as well as on Email. For consulting us directly you may call or WhatsApp us at: +91 991 0000 833 To resolve your complicated query, contact us through Email Id :info@eadvisors.in

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Dedicated Professional guidance

Professional experts are here at your service to assist you till the end of the process. For making it hassle free procedure we will be assisting you a professional who will be there to help you in case any difficulty asrises. Your work is our duty and in the hands of our experts.

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Our work is to provide with best of services and that too with transparency. We aim to make clients that goes long with us and stay satisfied with our variety of services. No hidden charges exist and everything will be informed to you well in advance.

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EAdvisors offers you various benefits

No Hidden Fees

EAdvisors is a well-known company, popular for its quality work and therefore no hidden or extra is charged by our clients.

 

Fast and Easy

By just sharing your documents with us on WhatsApp or email, you will get your dream company ready within 10 days only.

 

Order Registration

You will be given a Unique Order No. for you to track the status of company registration process. We offer this unique tracking method to given them a sense satisfaction that their work is our utmost priority. 

Secure Payments

Once the registration process gets started and payment is also made, it is our duty and responsibility to keep your payment secure and in return registering your company.

Use Local Currency

Being a company established in India, we will be accepting the payment in Indian Currency through any of the online mode of transfer.

Intelligent Working method

As the world is also getting advance within time, we have also established online way of accepting documents and creating your company.

Frequent Asked Questions

Increase in Authorized Share Capital

The Authorized Share Capital of the company is the maximum amount of share capital for which shares can be issued by the company. It is the capital specified in the Memorandum of Association (MOA) of the company.  

As per Section 2(8) of the Companies Act 2013, “Authorized Capital” is the capital that is actually authorized by the memorandum of the company. In simple words, the maximum amount of share capital that is allowed to be authorised. Authorized Capital is the capital which when increased helps the company to expand its business to the level of the authorised capital increased.

The maximum amount that company is legally authorised to issue to the shareholders and on which the stamp duty is paid by the company is termed as “Authorised Capital”. Whereas, the paid up capital is the amount that is actually paid by the shareholders of the company.

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