Increase/Alteration Share Capital

Alteration of Share Capital

The authorized capital of a company is the maximum amount of share capital that the company is authorized by its constitutional document i.e. MOA to issue (allocate) to shareholders. Authorized share capital is often not fully used by management in order to leave room for future issuance of additional stock in case the company needs to raise capital quickly. A Company may at any time require to induce more funds in the Company thus by issuing more share capital and increasing number of shareholders.

Difference between Authorized Capital and Issued capital

Authorized Share Capital Issued Share capital
The authorized share capital represents the upward bound on possible paid-up capital Issued share capital and paid-up capital are the total amount of capital funded by a company’s shareholders
Paid-up capital can never exceed authorized share capital.
In terms of investing or immediate business finance decisions, paid-up capital is generally more important.

 What Will be included in the said package?

1 Personal Consultation
2 Preparation of Secretarial Documents for convening the Board Meeting and Shareholders Approval.
3 Alteration of MOA and AOA
4 Drafting of Resolutions passed by the Companies and Minutes thereof
5 Filing of the Resolution with the ROC in Eforms
6 Filing of an application with the ROC with the Required documents for increasing the Authorized Capital
7 Approval of the Application submitted with the ROC

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