Increasing Capital of Company

"Never depend on single income. Make investment to create a second source."
- Warren Buffet

MOA and AOA finalized at the time of incorporation of any company has all the detailed information about the authorised capital of company. A company can issue maximum number of shares to its shareholders whose value in total should not more than authorise share capital of company. As per law, any company thus cannot issue more number of shares to its shareholders exceeding authorise capital.

If a director wishes to resign on his /her own, then according to section 169 of the Companies Act, 2013, he must precede the necessary filing and inform the same to MCA within 30 days once resigned.

But many companies face issues with this limited authorise capital when their business shows positive and consistent growth. They need more money to expand their business, issue new shares and thus meet their capital needs. Is it allowed to increase authorise share capital and issue new shares ?? Yes !!! Any company can increase authorised capital and for that approval of all shareholders and Registrar of Companies (ROC) is must. For this process, company must conduct a Board Meeting to pass a resolution to increase authorise capital of company and make necessary changes for the same in MOA and AOA of the company.

Contact Matriye Now and increase your share capital easily with quick and hassle free approvals.

  • 5000*
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