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Infuse More capital in the Company and avoid taking financial assitance.  

3 days

Start from Rs 5000/-

Quick Enquiry or Call : +919717712008 / 9650082009

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About

Share capital forms the part of Memorandum of Association of a company (MOA). In order to maintain financial decorum, concept of authorised share capital is laid down which is defined as the maximum value of share capital that the company is legally authorised to issue to its shareholders. Paid-up capital is defined as the total value of shares the company has already issued.

The paid-up capital cannot at any time exceed the authorized share capital. Thus, the need arises to increase authorized share capital.

Quick insights into compliance requirements:

  • Verify whether Articles of Association (AOA) of company authorizes such increase
  • Board Resolution for an increase in authorized share capital and for modification in the capital clause of MOA required.
  • Consent of members by the way of ordinary resolution required.
  • Compulsorily statutory forms filing within the time frame with concerned ROC.

Document Required

DOCUMENT REQUIRED

  • Certificate of incorporation (COI).
  • Copy of Memorandum (MOA)&Articles (AOA) of the Company
  • Documents of board meeting and documents of General Meeting
  • Authorized Director’s DSC

What You Get

  • Complete drafted documents including Notices with Explanatory statement
  • Professionally drafted Board resolution, Special resolution along with minutes
  • Altered Memorandum of Association (MOA)
  • Altered Articles of Association (if altered)
  • Timely ROC filings.
  • Copy of filed MGT-14 along with paid challan (In case alteration of AOA required)
  • Copy of filed SH-7 along with paid challan

Advantage

  • Means of infusing capital: Since a company can only issue shares up to the limit of its authorized share capital. If in case that limit is exhausted, there will be need to increase authorized capital to issue further shares.
  • Enhances borrowing capacity: Increased authorized capital indeed enhances borrowing capacity and makes it easier to obtain loan from banks.
  • Means to prevent hostile takeover:Authorized share capital should be much more than its need as it provides opportunity to the company to increase share capital whenever the need be. In order to maintain controlling interest, Corporates tend to refrain from issuing all of its authorized share capital.

Time Duration

  • Form SH-7 shall be filed with the registrar within 30 days of such alteration or increase
  • Form MGT-14 shall be filed within 30 days of passing special resolution (In case alteration of AOA involved)

HOW IT WORKS

 

How it works

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Faq's

1. What is Authorized capital?

It is the maximum value of share capital that the company is legally authorised to issue to its shareholders.