Do you want to increase your company?s share capital base? Vakilsearch?s experts will set up your compliances and documents
Package includes alteration of AOA, MOA, drafting of resolutions, & filing of forms with ROC.
An Authorised share capital determines the maximum number of shares a private business can issue. According to the 2013 New Companies Act, there is no minimum capital increase requirement. The capital clause of the Memorandum of Association is updated by the board approving an ordinary resolution in order to issue additional shares or increase the authorized share capital.
This sum of increase in share capital varies from business to business and could alter, but only with the consent of shareholders. Let's say a firm has an authorised capital of ?2 lakhs; in that case, it follows that it can issue shares for up to ?2 lakhs. However, because it is flexible, this allowed capital may be increased or decreased as needed. Let's imagine a firm has ?1 lakh in allowed capital, but an investor wishes to put in ?1 crore. In this case, the company can raise its authorised capital to ?1 crore. The permitted share capital increase for company registration is covered here.