Increase Authorized Capital

The share capital of a Company is necessary to set up a private or public limited Company. It can be increased or decreased during the lifetime of the Company.

Introduction

The Increase authorized capital of the Company determines the limits within which the Company may issue shares. Increases may be required in the same in order to issue more shares and infuse more capital into the Company. The authorized capital can be increased by the company at any time with shareholders’ approval and by paying an additional filing fee to the Registrar of Companies and paying the stamp duty. An increase in the share capital of the Company is a tedious procedural task, so leave the work of figuring them out to our experts by signing up for our Increase of Authorized Capital service today!

Necessary Documentation:

The documents required in order to increase the Company’s authorized capital are –

1. Board Resolution approving an increase in  authorized capital and notifying an Extraordinary General Meeting of the Company;
2. Notice of the EGM along with an explanatory statement explaining the requirement of increasing the capital;
3. An ordinary resolution accepting such increase in EGM/AGM;
4. Pass special resolution if AOA needs to be amended to authorize a company for an increase of share capital
5. Alter Memorandum of Association of the Company, incorporating the increase in authorized capital;
6. File Form SH 7 for an increase in authorized capital;
7. File Form MGT 14 if AOA is altered.

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