Increase Authorised Capital

Increase Authorised Capital – An Overview

Authorised Capital (also known as Authorised Share Capital) is the maximum amount of share capital that a company is permitted to issue to its shareholders, as specified in its Memorandum of Association (MOA). When a company requires additional funds for business expansion, investment, issuing new shares, or bringing in new investors, it may need to increase its authorised capital.

An increase in authorised capital requires approval from the Board of Directors and shareholders, amendment of the Capital Clause of the Memorandum of Association (MOA), and filing of the prescribed forms with the Registrar of Companies (ROC) under the provisions of the Companies Act, 2013.

Increasing the authorised capital enables a company to issue additional shares without incorporating a new entity, thereby supporting business growth and future fundraising activities.

At CAANYTIME, we provide complete assistance for Increase in Authorised Capital, including documentation, resolution drafting, ROC filing, and post-approval compliance support.

Benefits of Increasing Authorised Capital

Enables Additional Share Issue

Allows the company to issue more shares to existing or new shareholders.

Supports Business Expansion

Provides flexibility to raise additional capital for business growth and future projects.

Facilitates Investment

Makes it easier to bring in new investors or strategic partners.

Ensures Legal Compliance

The increase is carried out in accordance with the provisions of the Companies Act, 2013.

Improves Financial Flexibility

Provides sufficient authorised capital for future funding requirements.

Enhances Business Growth

Supports mergers, acquisitions, expansion plans, and capital restructuring.

Strengthens Corporate Structure

Maintains proper statutory records while increasing the company's capital base.

Who Requires Increase in Authorised Capital?

• Private Limited Companies
• Public Limited Companies
• One Person Companies (OPCs)
• Startup Companies
• Companies Planning to Raise Investment
• Companies Issuing Additional Shares
• Growing Businesses
• Companies Undertaking Expansion Projects
• Family-Owned Businesses
• Companies Requiring Capital Restructuring

Documents Required for Increase in Authorised Capital

• Certificate of Incorporation
• PAN of the Company
• Memorandum of Association (MOA)
• Articles of Association (AOA)
• Board Resolution
• Shareholders' Resolution
• Existing Share Capital Details
• Digital Signature Certificate (DSC)
• Director Identification Number (DIN)
• Authorization Letter (if applicable)
• Other Supporting Documents

Procedure for Increase in Authorised Capital

Step 1: Review of Existing Authorised Capital

Our experts verify the current authorised capital and determine the proposed increase.

Step 2: Drafting of Resolutions

Board Resolution and Shareholders' Resolution are prepared for approval.

Step 3: Amendment of MOA

The Capital Clause of the Memorandum of Association is amended to reflect the revised authorised capital.

Step 4: ROC Form Preparation

The prescribed ROC forms and supporting documents are prepared.

Step 5: Online Filing with ROC

The application is filed electronically with the Registrar of Companies along with the applicable government fees.

Step 6: ROC Approval

The Registrar reviews the application and approves the increase in authorised capital.

Step 7: Post-Approval Compliance

The statutory registers and company records are updated, enabling the company to issue additional shares.

Why Choose CAANYTIME for Increase in Authorised Capital?

At CAANYTIME, we provide complete assistance for increasing authorised capital with accurate documentation, timely ROC filing, and end-to-end compliance support.

Our services include:

• Capital Requirement Assessment
• Drafting of Board & Shareholders' Resolutions
• MOA Amendment Support
• Documentation Preparation
• ROC Form Filing
• Compliance Advisory
• Post-Approval Support
• Dedicated Company Law Expert