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Increase in Authorized Capital

The maximum number of shares a private limited company can issue is totally dependent on its authorized capital. In maximum cases, most of the startups start their first steps with the minimum authorized capital of Rs. 1 lakh, and this is too little with the growth of the business.

What you should know?

For existing promoters

If you are willing to increase the authorized capital and looking to issue new shares to your existing promoters, then a board meeting is required to be called and a form names PAS-3 is to be filed with the Registrar of companies affirming the allotment of shares.

To The Newbies

If you are looking to issue shares to the new shareholders, it is a quite complicated procedure, requiring a valuation report from a chartered accountant.

What You Need To Know

Not on Exports

The default option for start-ups and growing businesses as only private limited companies can raise venture capital.

Steep Fines

The default option for start-ups and growing businesses as only private limited companies can raise venture capital.

No Going Back

The default option for start-ups and growing businesses as only private limited companies can raise venture capital.

FAQs

Which form is required for filing in the ROC for making any a change in the Authorized share capital of the company?

Form SH-7 is required to file in the ROC for making changes in the authorized share capital of the company.

How much will it take in filling up the form for change of authorized share capital of the company?

As soon as you submit the required documents, we hardly take 3-4 days for filing for the change of authorized share capital of the company. Later, the MCA approval will take around 7-10 working days.

How to change the authorized share capital of the company as per company act, 2013?

Any company can increase its authorized capital by filing form SH-7 within a timeframe of 30 days from the date of passing the resolution, i.e., from the date of alteration.