Increase Authorized Capital of the company

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PATRA'S LAW CHAMBER SERVICES

Increasing the Authorized Capital of Your Company:

At Patra's Law Chambers, we offer comprehensive legal services to help companies increase their authorized capital. Whether you're planning for expansion or future funding, increasing your authorized capital is a strategic move for business growth.

But what exactly is authorized capital? Authorized capital, also known as the registered capital, is the maximum amount of share capital that a company is authorized to issue to shareholders. On the other hand, paid-up capital refers to the portion of authorized capital that has actually been issued to and paid for by shareholders.

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    Why Increase Authorized Capital?

    There are several reasons a company might need to increase its authorized capital:

    • Business Expansion: When a company is planning to grow, it may need additional funds which can be raised through issuing more shares.
    • Bringing in New Investors: To issue more shares to potential investors, your authorized capital must be increased.
    • Funding Projects: Large projects may require more investment, and issuing new shares can be an effective way to gather funds.

    How Can We Help?

    We handle the entire process of increasing your authorized capital, including:

    1. Amending the Memorandum of Association (MOA): We assist in amending your company’s MOA to reflect the new capital structure.
    2. Review of Articles of Association (AOA): If necessary, we will review and revise your AOA to ensure compliance with the new capital requirements.
    3. Drafting Resolutions: We draft the necessary resolutions for your Board Meeting and Extraordinary General Meeting (EGM), if required.
    4. Regulatory Filings:
      • MGT-14 Filing: Filing the special resolution for increasing the authorized capital.
      • SH-7 Filing: Filing to increase the authorized share capital with the Ministry of Corporate Affairs (MCA).
    5. E-Stamp Duty: We help with the filing and payment of e-stamp duty on the MCA website.

    Documents Required for Filing:

    To increase your authorized capital, we will need the following documents from you:

    • Amended MOA and AOA
    • Copy of the resolution passed in the Board Meeting
    • Copy of the special resolution passed in the EGM (if held)
    • Digital signatures of authorized directors for filing MGT-14 and SH-7
    • PAN of the company
    • Certificate of Incorporation
    • Details of paid-up capital and authorized capital

    Why Choose Patra’s Law Chambers?

    • Expert Guidance: We have in-depth knowledge and experience in company law matters, ensuring smooth and hassle-free filings.
    • End-to-End Service: We handle the entire process, from drafting resolutions to filing necessary forms with MCA.
    • Customization: We tailor our services to meet your specific business needs, ensuring compliance with all legal and procedural requirements.
    • Efficient Filing: Our team ensures that all documents are filed correctly and on time, saving you from any delays or penalties.

    FAQs

    Q1: What is the difference between authorized capital and paid-up capital? Authorized capital is the maximum share capital a company can issue, while paid-up capital refers to the actual amount of capital for which shares have been issued and paid by shareholders.

    Q2: Is an Extraordinary General Meeting (EGM) necessary for increasing authorized capital? Yes, if the company’s Articles of Association require an EGM for such changes, a resolution must be passed by shareholders.

    Q3: What forms need to be filed to increase the authorized capital? You will need to file Form MGT-14 for the special resolution and Form SH-7 for the increase in share capital with the Ministry of Corporate Affairs.

    Q4: How long does the process of increasing authorized capital take? Once all documents are in place, the process usually takes about 1-2 weeks, depending on the MCA’s processing times.

    Contact us today to discuss how we can help increase your company’s authorized capital smoothly and efficiently!

    Kolkata Office: NICCO HOUSE, 6th Floor, 2, Hare Street, Kolkata- 700 001

    Delhi Office: 1st Floor, Sadar Bazar Road, Paharganj House No.: 4455/VI, New Delhi-110001
    Phone: +91 8250422880 / 7003715325
    Email: [email protected]
    Website: www.patraslawchambers.com