Increase Capital

Increase in authorised or paid-up capital must be done with proper board resolution and filing of forms with Registrar of Companies.

What is Increase In Authorised Capital ?

The authorised capital of a Company determines the number of shares a Company can issue to its shareholders. An increase in authorized capital might be required for issuing new shares and/or inducting more capital into the Company. The initial authorised capital of the Company is mentioned in the Memorandum of Association of the Company and is usually Rs. 1 lakh. The authorised capital can be increased by the company at anytime with shareholders approval and by paying additional fee to the Registrar of Companies.


To begin the process for increasing authorized capital a resolution must be passed by the Board of Directors. In the Board Resolution, authorisation must be provided for increasing the authorised capital of the company and making the necessary changes to the MOA and AOA of the company. Abidix can help you easily increase the authorised capital of your company.



4 Essential Facts On Increase In Authorized Capital

Paid-up Capital

Paid up share capital of a company is the amount of money for which shares were issued to the shareholder for which payment was made by the shareholder.


Authorised Capital

Most promoters incorporate their company with an authorised capital of Rs.1 lakh or Rs.10 lakh and issue shares with a value of Rs.1 lakh or less to founding members.


Increase Capital

The authorised capital of a company can be easily changed by paying additional government fee, as prescribed by the Ministry of Corporate Affairs.


Board Approval

The increase in authorised capital of a Company, must be approved by the Board of Directors of the Company.