Earendil | Increase In Authorized Share Capital
increase in the authorized share capital
- The authorized capital is the amount mentioned in the MOA of the company.
- Number of shares a company can issue to its shareholders depends on the
authorized capital amount.
- The company can raise fund only the amount mentioned in a capital clause.
- For a company to raise more capital than the amount mentioned in the MOA the
capital clause has to be amended by the members.
- Special Resolution must be passed in a general meeting.
- The same procedure must be done for issuing new shares or infusing more
capital into the company.
why register with earendil
- Our Chartered Accountant will guide you through the process. He/she will be
your single point of contact for registration assistance and for all other services that we offer.
- Our motto is “You only do what you do best; to us, leave the rest”. We assure
that once we start our relationship, you wouldn’t have to think about the areas which we handle.
- We take care all the documentation and follow up with the Ministry of
Corporate Affairs to ensure that the increase in authorized share capital is registered with Registrar of
Companies at the earliest.
- Not just Start Your Business, but also Run Your Business. With us, your first
month of compliances such as TDS, GST and processes such as payroll and accounting are free to ease you into
your business.
- We will also assist you with setting up and documenting Standard Operating
Procedures (SOPs) for your business.
VERIFY AOA OF THE COMPANY
- Verification of AOA has to be done to check the provision to increase the
capital.
- If there are no provisions the company need to make changes in the AOA of
the company.
- Board meeting resolution must be passed.
- Share capital must be raised by arranging a board meeting.
- All the member should give their approval for raising fund.
- Make the necessary changes in the MOA.
- Get the approval from the company secretary.
- Plan for the extraordinary general meeting.
FILE FORMS WITH RECORDS
- After the general meeting and extraordinary meeting, the resolution document
must be filed along with relevant forms.
- Form SH-7 should be filed within 30 days of passing of the ordinary
resolution.
- The prescribed government fee for authorized capital should be attached.
DOCUMENTS
- EGM notice.
- Copy of Ordinary resolution.
- Modified Memorandum of Association.
- If there is a provision in the company MOA for raising capital the Registrar
would approve the same.
