Increase Your Company’s Authorized Capital from India’s Recommended CA Panel

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As per section 2(8) of the Companies Act, 2013 the capital which is authorized by the memorandum of the company to be the maximum amount of share capital of the company is called the authorized capital of the company.
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Following the incorporation procedure and continuing business operation, a company may need to increase the authorized capital for numerous reasons:

  • Expanding business
  • Preparation for new venture
  • Hiring new Resource / Expertise on the Board
  • Increasing number of Investors

Guided Requirements from your Company’s End

Documented AoA of the Company

The company’s AoA must have a clause for an increase in capital in the future. If not, the organization is required to modify the Articles as per Section 14 of the Companies Act, 2013

Board Meeting

A Board Meeting should be organized to approve the Increase in Authorized Capital from the Board of Directors.

Shareholders’ Approval

Following the Board Meeting, the company’s shareholders should be addressed to get approval on the Increase in Authorized Capital.

Adaptation in Company’s MoA

After getting approval from the Board and the Shareholders, the Company’s MoA should be modified for increasing the Authorized Capital

Acquaint with ROC

The alteration in the company’s MoA, AoA, increase in the Authorized Capital, should be informed to the Registrar of Companies (ROC) and the Ministry of Corporate Affairs (MCA)

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Filing and Processing of Company’s Authorized Capital Increase


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The capital which is authorized by the memorandum of the company to be the maximum amount of share capital of the company is called the Authorized Capital of the Company. It is required to be mentioned in the company’s MoA.

A company can increase its Authorized Capital by initiating an amendment in its AoA (if needed). Consequently, the company needs to organize a Board Meeting to get approval from the Directors and the Shareholders.

The procedure of Increase in Authorized Capital for a company is regulated by the Company Act, 2013 of the Indian Govt. along with the regulations of the Registrars of Companies (ROC).

Not really. The Directors can approve the same in a Board Meeting followed by the assent of the shareholders of the company.

It completely depends on how the company itself manages to conduct the essential steps like Board Meeting organizing, approval process from the Directors – Shareholders, etc. The legal process usually takes 7-10 working days of time to be completed.