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Unlock the transformative potential of your initiatives with GHR Advisory’s registration services Increase in authorized Capital
The maximum number of shares that a private business may issue is defined by its authorised share capital. According to the 2013 New Companies Act, there is no minimum capital increase requirement. The capital clause of the Memorandum of Association is updated by the board approving an ordinary resolution in order to issue additional shares or increase the authorized share capital.
 This sum of authorised share capital increase varies from business to business and could alter, but only with the consent of shareholders. Let’s say a firm has an authorised capital of ₹2 lakhs; in that case, it follows that it can issue shares for up to ₹2 lakhs. However, because it is flexible, this allowed capital may be increased or decreased as needed. Let’s imagine a firm has ₹1 lakh in allowed capital, but an investor wishes to put in ₹1 crore. In this case, the company can raise its authorised capital.
Increasing authorized share capital provides your company with strategic financial flexibility, enhanced borrowing capacity, and the ability to attract investments. It allows for smoother adaptation to changing financial needs.
 A higher authorized share capital contributes to an increased net worth, positively impacting your company's borrowing capacity. This, in turn, provides a solid financial foundation for potential projects and expansions.
 GHR Advisory offers two packages: one for the increase of capital (₹5499/+tax) and another for the issue of new shares (₹7999/+tax). Government fees and stamp duty depend on the authorized capital of the company.
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