Raise Funds Quickly
Now increase your company’s capital base with the assistance of LAW SUVIDHA and get quality services at affordable prices.
The authorised capital of a private corporation determines the maximum number of shares that can be sold. According to the new Companies Act of 2013, there is no requirement for minimum capital. The capital clause of the Memorandum of Association is changed by adopting an ordinary resolution by the board to issue additional shares or raise the authorised capital.
Law Suvidha is a right business platform which helps in the end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. Increasing Share Capital is seamless, economical, and quick with Law Suvidha!
A company can raise as much authorised capital as it wants, and this will be reflected in the MoA with amendments. As a result, raising authorised capital has a cumulative effect on overall company share capital.
The rise in share capital raises the company’s total net value. This increases the company’s borrowing capability even further.
It may entice investment, since it may be readily accommodated if sufficient authorised capital is available.
The documentation must be filed with the MCA within 30 days of receiving shareholder approval for the share capital increase. SH-7 is the usual resolution for private enterprises, and MGT-14 is unnecessary.
The documents required for obtaining GST Registration in India are as follows:
For partnership deed – Partnership Deed
For others: Registration Certification of the business entity
Fill Get in touch form
Fill the contact form
Select your service
We will contact you
Fill Get in touch form
Fill the contact form
Select your service
We will contact you
The maximum limit of a company’s share that can be split with its shareholders is known as authorised capital.
The authorised capital is the maximum amount of money that a corporation can raise from the public. Thus, in order to obtain cash from the general public, you must expand your company’s authorised share capital.
Clause 4 of the articles of association must be amended. If the firm is not authorised to alter the AOA, it must be amended by a special resolution. A copy of the order granting such modification must be submitted with the registrar within 15 days of the AOA.
The company must file Form SH-7 within 30 days of the resolution date.
It is a percentage of the authorised capital that potential shareholders have committed to buy from the company’s treasury, typically as part of the company’s first public offering.