HomeIncrease in Authorised Capital - Legal Popcorn
IDEA FOR START-UPsIncrease in Authorised Capital
The maximum number of shares a private limited company can issue is decided by its authorised capital. Most start-ups start their journey with the minimum authorised capital of Rs. 1 lakh, but this is too little as the business grows. To issue new shares or raise the capital a company is authorised to raise, the capital clause of the Memorandum of Association needs to be amended by passing a special resolution of the board. If, at this point, you may also need shares to be issued to existing promoters or new shareholders.
Low set-up cost
There is absolutely no other payment. We will send you an invoice that is all-inclusive, with no hidden charges.
The main advantage is that in an LLP, there are fewer formalities after the business has been incorporated.
The term 'tax benefit' generally refers to any tax law that provides you with an opportunity to reduce your tax bill when you satisfy certain eligibility requirements.
Attract Top Talent
You may not be able to match their current salary, but an offer of shares in your company will be enough to attract the best talent.
Issuing shares to new shareholders is a complicated procedure, necessitating a valuation report from a chartered accountant.
If you are increasing the authorised capital and issuing new shares to existing promoters, a board meeting needs to be called and Form PAS-3 needs to be filed with the Registrar of Companies (RoC).
From your Procedure
Upload the Required Documents & Information to our web portal
Choose Package and Pay online with different payments modes available
On placing an order, your application will be assigned to one of our dedicated professionals.
Our professional team will prepare computation for Increase in Authorised Capital.
Your authorized share capital is increased.
Once your authorized share capital is increased, we send you all the documents and DSCs.