logo
. . .

Increase in Authorized Share Capital

The maximum limit of share capital up to which a company can issue its share to shareholders is known as authorized capital. A company is not authorized to issue paid-up capital beyond authorized capital. If the company proposes to issue shares beyond aut

Get Expert Assistance

Introduction

The maximum limit of share capital up to which a company can issue its share to shareholders is known as authorized capital. A company is not authorized to issue paid-up capital beyond authorized capital. If the company proposes to issue shares beyond authorized share capital amount, if do so then it has to increase the authorized share capital after fluffing the particular compliance.

For increasing authorized capital company has to follow the provisions led down under section 61, section 13 and section 64 of the company’s act 2013.

Process of increasing authorized capital of a company:

➲ Article authorizes for this: Article of the company must contain the provision related to the increase of authorized capital. Means article must allow for increasing the share capital of the company. If the company article doesn’t have such provision then the first step is to amend the article of the company and add such provision.

➲ Commence Board meeting: Pass resolution for:

  1.  increasing the authorized capital of the company
  2. Fixing date for commencing EGM to get approval from shareholders
  3. To approve notice and agenda for EGM

➲ Issue Notice of EGM: send notice to all the shareholders of the company including directors and auditor of the company at least 21days before the EGM date

➲  Commence EGM: hold EGM on the due date and passing an ordinary resolution under section 61(1)(a) for increasing the authorized share capital

➲  File form SH-7: in within 30 days from the date of passing resolution company need to file SH-7 along with following attachments;

  1. EGM’s Notice
  2. True certified copy of the passed resolution

➲  Concerned ROC (registrar of the company ) will scrutinize the form and attachment and will approve for increasing authorized share capital

Forms

Filing date

SH-7

Within 30 days from passing such resolution

  

  • STEP 1
    Connect With Corpzo

    Connect with the team corpzo to discuss specific requirements for your business at +91 9999 139 391 or reach@corpzo.com. It takes 20-25 minutes to discuss requirement.

  • STEP 2
    Dedicated Manager

    Once you discuss the requirement, we will align a dedicated Account managers to understand your business needs and provide solutions and assist entire process.

  • STEP 3
    Real Time Update

    Use our platform to track progress of application and many more. Always know what is going on with your project, what is in progress, and what is done.

  • STEP 4
    Job Completed

    Once job is completed, you will receive complete registrations & certifications directly to your email ID and at your doorstep

Request A Callback
Company Share Transfer

The share transfer is a process through which the transferring of share takes place between the existing person or from existing person to the third person. Transferability of shares are govern under companies article. The securities like equity share are

Read More
Increase in Authorized Share Capital

The maximum limit of share capital up to which a company can issue its share to shareholders is known as authorized capital. A company is not authorized to issue paid-up capital beyond authorized capital. If the company proposes to issue shares beyond aut

Read More
Buy-Back Compliance

The process by which Company buy-back it’s Shares from the existing Shareholders usually at a price higher than the market price is known as buyback of shares. Situation when the Company buy-back the Shares, the number of shares outstanding in the marke

Read More

Expert Legal Advisory Our Customers Love

Bespoke advisory focused on mission critical legal, financial and business aspects.

server room

Trusted By Clients And Industry Experts

Uniquely repurpose strategic core competencies with progressive content. Assertively transition ethical imperatives and collaborative manufactured products.

Write About Us
Let’s chat? - We're online