Why Increase Authorized Capital?
Business Expansion: Raise funds for new projects, expansion, or working capital by issuing additional shares.
Regulatory Compliance: Ensure you do not exceed the maximum share capital permitted by your company’s charter.
Investor Onboarding: Welcome new investors or increase equity participation from existing shareholders.
Financial Flexibility: Strengthen your balance sheet and improve access to credit.
Authorized Capital Increase Services
Review of Articles of Association (AOA)
Verify if the AOA allows for an increase in authorized capital.
If not, amend the AOA with shareholder approval before proceeding.
Board Meeting & Resolution
Convene a board meeting to propose the increase and call for a general meeting of shareholders.
Approve the draft notice and explanatory statement for the general meeting.
Shareholder Approval
Hold an Extraordinary General Meeting (EGM) to pass an ordinary resolution for the increase.
Amend the Memorandum of Association (MOA) to reflect the new authorized capital.
Regulatory Filings
File the necessary forms with the Registrar within 30 days of the resolution.
Attach the certified copy of the resolution, altered MOA, and AOA (if amended).
Pay the applicable government fees and stamp duty.
Post-Approval Compliance
Update all company records, statutory registers, and official documents to reflect the new authorized capital.
Issue new shares as needed, following the increase.
Who Needs Authorized Capital Increase Services?
Private Limited Companies: Planning to issue new shares or raise additional funds.
Startups & SMEs: Preparing for investment rounds or business expansion.
LLPs and Partnerships: Converting to a company structure and requiring more capital flexibility.
How Our Authorized Capital Increase Process Works
Step 1 – Consultation & Document Collection
Discuss your requirements and provide necessary documents, including the current MOA, AOA, and board resolutions.
Step 2 – Board & Shareholder Resolutions
Assistance with drafting and passing all required resolutions and amending company documents.
Step 3 – Filing & Compliance
Preparation and filing of all forms and documents with the authorities, ensuring accuracy and compliance.
Step 4 – Post-Approval Updates
Guidance on updating all business records and issuing new shares as per the increased capital.
Authorized Capital Increase Checklist
Compliance Area | Requirement |
---|---|
AOA Review | Confirm provision for capital increase or amend AOA |
Board Resolution | Approve increase and call EGM |
Shareholder Approval | Pass ordinary resolution in EGM |
MOA Amendment | Update capital clause |
Registrar Filings | File necessary forms with supporting documents |
Fees & Stamp Duty | Pay applicable government charges |
Post-Change Updates | Update all records and statutory documents |
Data Security | Ensure secure handling of all company and personal data |
Frequently Asked Questions (FAQs)
What is authorized capital?
Authorized capital is the maximum amount of share capital a company is permitted to issue as stated in its Memorandum of Association.
Why would a company need to increase its authorized capital?
A company increases its authorized capital to issue more shares, raise additional funds, or onboard new investors for business growth.
What is the process for increasing authorized capital?
The process includes reviewing the AOA, passing board and shareholder resolutions, amending the MOA, and filing the required forms with the Registrar.
What documents are required for authorized capital increase?
Key documents include the board and shareholder resolutions, altered MOA and AOA, notice of EGM, and relevant filing forms.
What are the penalties for non-compliance?
Failure to follow the prescribed process can result in penalties, fines, and rejection of the capital increase by authorities.
Get Started
Contact us today for a free consultation and a customized plan. Experience a hassle-free, secure, and fully compliant authorized capital increase process—so you can focus on your business growth.
Let our experts manage your compliance—so you can focus on success.
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