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What is Increase in Capital


 

The share capital is part of company’s capital which is raised through issue of shares. A company may raise capital only to the extent of the authorized capital mentioned in the company. To increase the capital raising capacity, the authorized capital can also be increased any time after incorporation by payment of additional fee and stamp duty. A company can issues shares only to the extent of authorized capital. Hence, it determines the number of shares a company can issue which is mentioned in the Capital Clause of MoA. In order to increase capital raising capacity, it has to increase the authorized capital first. To alter authorized capital clause, the company need to conduct a meeting of Board and Member that is followed by application to MCA.

Benefits of Increase in Capital


 
 
 

Documents required for Increase in Capital


 
 
 
 
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Digital Signature Certificate

DSC of one of authorised director to be provided
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MoA & AoA

A copy of latest amended MoA and AoA of the company
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CoI

Certificate of Incorporation of company to be provided
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PAN Card

Copy of PAN card of the company to be provided

Authorised capital

It is the maximum amount of capital a company may raise

Issued Capital

It is that part of authorised capital, which is issued to raise capital

Subscribed Capital

It is that part of issued capital, which is subscribed to be paid by the shareholders

Paid-up Capital

It is that part of capital, which is subscribed and paid to company by the shareholders

Steps to Increase in Capital with CCA

1. Fill the form given on the right

2. Select your package

3. Fill the company details

4. Pay the amount & done

Once you done, our expert will contact you.

 

 

Increase in Capital (FAQs)


 
1Which approvals are required for increase in share capital of Private Limited Company?
The increase in capital shall receive following consent or approval: 1. Consent from the Board; 2. Consent from the members of the company; and 3. Approval from concerned RoC.
2When should the forms be filed with MCA?
The form must be filed within 30 days after obtaining consent from shareholders for the share capital increase. The resolution passed is notified in MGT-14 and notice of increase is filed in SH-7 with altered MoA and AoA.
3Whether increase of capital is reflected on MCA portal?
Yes, the total authorized and paid-up capital is displayed on the Master Data of the company on the MCA portal.
4How does the increase in capital impact the company in filing fee?
The Government fee for any e-form filed with MCA depends on the authorized capital of the company. With the increase in Authorised capital, the Government fee for online filing also increases, however to a nominal extent.
5Whether package includes increase in paid-up share capital, too?
Yes, the package cost also includes the increase in paid-up capital of the company, but not the transfer of shares.
 

More Questions?

Contact us for additional assistance

 

More Questions?

Contact us for additional assistance