Increase Authorized Capital
- Inclusive Of Govt. Fees
As per Section 2(8) of the Companies Act, 2013, ‘authorized capital’ means such capital as is authorized by the memorandum of a company to be the maximum amount of share capital of the company. Each business will require more funds to expand its business. This requirement of funds can be fulfilled by infusion of more funds through issue of new Share. But at the time of registration, the authorized and paid up capital is specified in the MOA and AOA of the Company, so Company can issue shares only up to the limits of the Authorized capital of the Company mentioned in MOA. If the Company wants to raise capital by issue of more shares over the Authorized Capital as specified earlier then amendments needs to be done in the MOA to increase the Authorized Capital.
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- Authorized share capital is the total value of share capital that company can issue. It is the maximum amount of share capital of the Company.
- Paid up capital is the total amount of money received to the Company by way of issuing its shares to Shareholders i.e. it is the total value of shares of the Company that have been issued to the Shareholders of the Company.
- The Paid-up capital does not exceed the authorized capital.
- Whenever company wants to raise capital by issue its shares to meet its fund requirement but company’s authorized capital limit is already exhausted then in such Case Company has to increase its authorized capital by following the procedure stated in the Companies Act, 2013.
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