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Increase Authorised Capital

The authorised capital of a Company determines the number of shares a Company can issue to its shareholders. An increase in authorised capital might be required for issuing new shares and/or inducting more capital into the Company. The initial authorised capital of the Company is mentioned in the Memorandum of Association of the Company and is usually Rs. 1 lakh. The company can increase authorised capital at anytime with shareholders approval and by paying additional fee to the Registrar of Companies.

To begin the process to increase authorised capital a resolution must be passed by the Board of Directors. In the Board Resolution, authorisation must be provided to increase authorised capital of the company and making the necessary changes to the MOA and AOA of the company. Increase in Authorised capital in India can be done through Registration Arena in all major cities including Hyderabad, Mumbai, and New Delhi, Chennai, Kolkata & all other Indian cities.

Procedure to Increase Authorised Capital

Relevant information to Increase Authorised Capital

Authorised Capital
The authorised capital of a Company determines the value and number of shares a Company can issue to its shareholders.

Paid-up Capital
Paid up share capital of a company is the amount of money for which shares were issued to the shareholder for which payment was made by the shareholder.

Increase of Authorised Capital
The authorised capital of a company can be easily changed by paying additional government fee, as prescribed by the Ministry of Corporate Affairs. Most promoters incorporate their company with an authorised capital of Rs.1 lakh or Rs.10 lakh and issue shares with a value of Rs.1 lakh or less to founding members.

Board Approval
The increase in authorised capital of a Company, must be approved by the Board of Directors of the Company.

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2999*
  • Increase in authorised capital

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4998*
  • Increase in authorised capital
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6497*
  • Increase in authorised capital
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11496*
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