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Increase in authorized Capital

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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.

The registered office is the location where a company maintains its statutory records, including books of accounts, registers, and essential documents.

 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.

Strategic Financial Flexibility

Increase your financial flexibility by expanding your authorized share capital, enabling your company to adapt to evolving financial needs and opportunities.

Enhanced Borrowing Capacity

A higher authorized share capital enhances your company's net worth, boosting its borrowing capacity for potential projects and expansions.

Our benefits

Benefits of Increasing Authorized Share Capital with GHR Advisory:
Attracting Investments
Smooth Regulatory Compliance
Tailored Packages
Cost-Effective Solutions

Why should I consider increasing authorized share 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.

How can an increased authorized share capital benefit my company's net worth?

 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.

What packages does GHRAdvisory offer for increasing authorized share capital?

 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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