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Set up a sole Authorized Capital Increase Firm

  • Increase in authorised capital of upto Rs.10 lakhs.
proprietorship

Register Authorized Capital Increase Firm Online through Compliance Gurukul

You can easily complete Authorized Capital Increase firm registration online through Compliance Gurukul. For a sole Authorized Capital Increase registration, only the PAN & Aadhaar card of the business owner is required. We can help you obtain the following registrations in less than 15 days:

  • GST Registration
  • Zero-Balance Business Current Account with Compliance Gurukul Software

Once, you have registered for the Authorized Capital Increase firm registration online on Compliance Gurukul, please follow the steps below and upload the following documents by logging into Compliance Gurukul Software.

  • Step 1: Login to Compliance Gurukul Software using the email address for payment.
  • Step 2: Go to Services Tab & Select Authorized Capital Increase Engagement
  • Step 3: Upload your PAN & Aadhar Card Copy
  • Step 4: An Compliance Gurukul Registration Expert will file the registration application with GST Department and Bank for Current Account.
  • Step 5: Access to Compliance Gurukul Software is for GST invoicing, GST filing and other services.

Company Authorized Capital Increase

Each business needs more funds over time to run business. These funds can be required on a long- and short-term basis. A short-term need can be satisfied by taking loans and advances. But in the long run, the company will require more funds. For a Private Limited Company, this can be done by increasing the company's authorised capital. Since the private limited company is governed and regulated under the Company Act to make changes in the structure, it is necessary to follow the Act and the rules stated.

What is Authorized Capital?

According to Section 2 (8) of the Companies Act 2013, “Authorized Capital” is the capital authorised by the company's memorandum to be the maximum amount of the share capital of the company.

The company can expand its business to the level of the authorised capital. If the company has to expand the business, infusing more funds than at first, the company has to increase the authorised capital.

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Document requirement for Authorized Share Capital Increase

Specific documentation must be submitted within 30 days following shareholder approval to formalise an increase in authorised share capital. For private companies, this involves submitting the resolution through e-form SH-7, while the submission of e-form MGT-14 is not required. Ensure the following documents are prepared for filing:

  • The latest amended version of the Memorandum of Association (MoA)
  • The most recent or revised copy of the Articles of Association (AoA), particularly in cases where the AoA has been altered
  • A copy of the ordinary resolution approved by the company's shareholders

Timelines

A sole Authorized Capital Increase firm registration can normally be done in India through Compliance Gurukul in max 2 weeks. However, the timelines for registration will vary from case to case, depending on the government and bank processing timelines.

Authorized Capital Increase FAQ's

Authorized capital, as per Section 2 (8) of the Companies Act 2013, represents the maximum amount of share capital a company can issue as stated in its memorandum.

Authorized capital is the maximum potential value of shares a company can issue, while paid-up capital is the actual value of shares that have been issued and paid for.

A company can increase its authorized share capital by amending its Memorandum of Association (MOA) to raise the maximum limit and then following the prescribed legal procedures.

Reasons may include addressing financial needs, funding new initiatives, facilitating mergers, issuing additional shares, or meeting regulatory requirements.

Required documents typically include the amended MOA, resolution passed by shareholders, and filings such as Form MGT-14 and Form SH-7, along with other relevant company records.

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