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Increase in Authorized Capital of Company

The authorized capital of a company is the maximum amount of share capital that the company is authorized by its constitutional documents to issue to shareholders. It is also known as s the authorized share capital, registered capital. Part of the authorized capital can remain unissued. The company can raise capital up to this amount. The part of the authorized capital which has been issued to shareholders is referred to as the issued share capital of the company. The device of the authorized capital is used to limit or control the ability of the directors to issue or allot new shares, which may have consequences in the control of a company or otherwise alter the balance of control between shareholders. Such an issue of shares to new shareholders may also shift the profit distribution balance. The authorized capital can be changed with shareholder’s approval. This is increased with a view to raise more funds in terms of equity finance, because beyond the limit of authorized capital equity cannot be raised. After the increase in authorized capital the company may raise the required funds by the way of equity.

Documents required:

Ø  Certificate of Incorporation.
Ø  Copy of MOA/AOA.

Procedure of Increase in Authorized Share Capital

Ø  Articles of Association of the Company to provide necessary authority/powers is there to increase the authorized share capital of the Company.
Ø  Issue the Board Meeting notice in writing and convene the Board Meeting to decide about the increase and to fix up the date, time, place and agenda for convening a General Meeting for passing of the Resolution, if so required by the Articles, for the same.
Ø  Issue notices in writing at least 21 days before the date of the meeting for the General Meeting with Explanatory Statement.
Ø  Pass the necessary Resolutions in the meeting.
Ø  File the proceedings of the meeting and necessary e-Forms with ROC and ROC will approve the such.

Inclusions in our services

Ø  Drafting of Notices for required Meetings
Ø  Preparation of All required Resolutions.
Ø  All Documentation.
Ø  Alteration in MOA.
Ø  Statutory Fees.
Ø  Share Capital Application Preparation.
Ø  Share Capital Application Filing.
Ø  All other Consultancies regarding that.