Increase Authorized Capital in a company at just Rs 3,999/-
When an entrepreneur decides to get company registration and settles on the business structure most suited to the purpose of the business and other co-owners, it is essential to decide what the share capital of the company is to be and how can we Increase Authorized Share Capital.
The share capital is that part of a company’s equity which has been raised by issuing shares and selling them to stockholders in exchange for capital (cash or other considerations). In order to maintain financial decorum, the government stipulates that no company can indiscriminately issue shares for the purpose of raising capital. To that effect, authorized share capital is the maximum value of share capital that the company is legally authorized to issue to shareholders.
Hence the authorized share capital of the company can be increased at any time, subject to the constraints and clauses dictated by section 61 (read with section 13 and 14) of the Companies Act, 2013.
Step 1- Verifying approval within the Articles of Association
Step 2- Board meeting to notify the incidence of EGM
Step 3- Extraordinary General Meeting
Step 4- ROC Form documenting
MOA & AOA
Minutes of General Meeting
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