Book an appointment

Annual return GSTR-9 and GSTR-9C, under section 44 of CGST Act, due date stands extended for financial year 2019-20 from 3:

Authorized Share Capital Increase

A company may need to extend its authorized share capital before issuing new equity shares and increasing paid-up capital. Authorized share capital is that the total value of shares a corporation can issue, while paid-up capital is that the total value of shares the corporate has issued. Paid-up capital can never exceed authorized capital. Hence, if an organization having a licensed capital of Rs.10 lakhs and paid-up capital of Rs.10 lakhs would adore to induct new shareholders, it can do so either by:

Track Your Status

  • (a) Increasing authorized share capital and issuing new shares. (or)
  • (b) Transferring shares from existing shareholders to the new shareholders.

Usually, in most of the cases, new shares are issued and authorized capital is increased.

Verify AOA of the Corporate

Before commencing the procedures for increasing authorized share capital, verify the AOA to form sure there's enabling provision within the Articles of Association (AOA) particularly with reference to increase authorized share capital. If there are not any provisions for increasing authorized share capital, the corporate must first make changes to the AOA of the corporate.

Convene Committee Meeting

To increase the share capital first you need to convene a committee meeting by providing notice to the Director. At the committee meeting, obtain approval from the Board of Directors for increasing authorized share capital. Then fix a date, time, and place for conducting an Extra-Ordinary General meeting to get an approval of shareholders for the rise of authorized share capital and making changes to the MOA of the corporate.

Extra-Ordinary General Meeting

On the time, date, and place mentioned on the Notice of Extra-Ordinary General Meeting, conduct the Extra-Ordinary General Meeting and acquire shareholders’ approval for increase of authorized capital. The approval of shareholders for increasing authorized share capital must be within the sort of a standard resolution.

File ROC Forms

Once the standard resolution is passed at the Extra-Ordinary General Meeting, Form SH-7 must be filed by the corporate within 30 days of passing the standard resolution. alongside Form SH-7, the prescribed government fee for authorized capital must be paid and therefore the following documents must be attached:

  1. Notice associated with EGM.
  2. Authorized True copy of Ordinary Resolution.
  3. Changed Memorandum of Association. (Showing higher authorized capital)

If the procedures for increasing authorized capital are followed as mentioned within the Companies Act and corporations Rules, then the Registrar would approve the filing and increase the authorized share capital of the corporate. The new authorized share capital of the corporate would be reflected on the MCA portal.

Price Table
Plan - A

Basic

4800
+ GST 18%

Service Highlight
  • Increase in authorised capital of upto Rs.10 lakhs.
DOCUMENTS REQUIRED
  • Address proof of directors
  • Address proof of directors
  • Address proof of directors
Book Now
Plan - B

Standard

9800
+ GST 18%

Service Highlight
  • Increase in authorised capital of upto Rs.25 lakhs.
DOCUMENTS REQUIRED
  • Address proof of directors
  • Address proof of directors
  • Address proof of directors
Book Now
Plan - C

Premium

14000
+ GST 18%

Service Highlight
  • Increase in authorised capital of upto Rs.1 Crore.
DOCUMENTS REQUIRED
  • Address proof of directors
  • Address proof of directors
  • Address proof of directors
Book Now

Need Consultancy? Ask Tax Seva Kendra Expert@ Rs. FREE

  • Free Consultancy
  • Online Documentation
  • Anywhere In India