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Authorized capital is the maximum amount of share capital that a company is legally permitted to issue to its shareholders. If your business is expanding and you need more funds or if you plan to issue more shares, increasing your authorized capital is the next step. WeIncept offers end-to-end support in the process of increasing your authorized share capital, ensuring compliance with the Companies Act, 2013.

What Is Authorized Capital?

Authorized capital is the total value of shares that a company can issue. It is specified in the Memorandum of Association (MOA) during company registration. Over time, if a company requires more capital to meet its growing needs, it can increase its authorized share capital by following a legal process. This allows the company to raise more funds by issuing additional shares to investors, partners, or the public.

Key Services Offered by WeIncept for Increasing Authorized Capital:

• Board Resolution Drafting: We help draft the board resolution required to approve the increase in authorized capital.
• Special Resolution Filing: For certain increases, we assist in obtaining shareholder approval through a special resolution and filing it with the Registrar of Companies (ROC).
• Amendment of MOA: We assist in updating the Memorandum of Association (MOA) to reflect the increased capital.
• ROC Filing: We manage the filing of Form SH-7 and other required forms with the ROC to register the increase in authorized capital.
• Legal Documentation Support: Our experts provide legal support for preparing all necessary documents and ensuring compliance with the Companies Act.

Documents Required for Increasing Authorized Capital:

To increase your company’s authorized capital, the following documents are typically required:

• Board Resolution approving the increase
• Special Resolution (if applicable)
• Altered Memorandum of Association (MOA)
• Form SH-7 (for increasing authorized capital)
• Notice of Extraordinary General Meeting (EGM)
• Shareholders’ Consent (if applicable)

Step-by-Step Process for Increasing Authorized Capital:

1. Consultation & Document Collection: We begin by understanding your company’s capital requirements and collecting the necessary documents for processing the increase.
2. Drafting of Board Resolution: Our team drafts the board resolution to approve the increase in authorized capital and assists in convening the board meeting.
3. Shareholders’ Approval (if applicable): If required, we help organize an Extraordinary General Meeting (EGM) to pass a special resolution for increasing the authorized capital.
4. Filing of Forms with ROC: We handle the filing of Form SH-7 and other necessary documents with the Registrar of Companies to register the increase.
5. Amendment of MOA: We assist in amending the Memorandum of Association to reflect the increased capital.
6. Final Compliance & Documentation: Once the ROC approves the increase, we provide confirmation and update your company’s records accordingly.

Why Choose WeIncept for Increasing Authorized Capital?

• Expert Legal Guidance: We ensure that the entire process of increasing authorized capital is done in compliance with the Companies Act, 2013, and other regulations.
• Efficient & Timely Process: Our team manages the paperwork and filings efficiently, minimizing delays and ensuring a smooth transition.
• Comprehensive Support: From drafting resolutions to filing forms with the ROC, we provide end-to-end support, ensuring all legal requirements are fulfilled.
• Cost-Effective Solutions: Our services are affordable, providing high-quality support at competitive prices.
• Ongoing Compliance Support: After the increase, we provide continued compliance assistance to ensure that your company remains legally compliant.

Benefits of Increasing Authorized Capital:

• Raise Additional Funds: By increasing the authorized capital, your company can issue more shares and raise additional funds from investors or the public.
• Expand Business Operations: Access to more capital allows companies to expand their operations, invest in new projects, and pursue growth opportunities.
• Strengthen Investor Confidence: An increase in authorized capital demonstrates that the company is financially stable and capable of expanding its shareholder base.
• Flexible Financing Options: With more authorized shares, companies have the flexibility to raise capital through equity rather than debt, reducing financial risk.

Consequences of Non-Compliance:

• Penalties & Fines: Failure to comply with the procedure for increasing authorized capital may result in penalties or fines from the ROC.
• Legal Disputes: Non-compliance with share capital regulations can lead to legal disputes with shareholders or regulatory authorities.
• Restrictions on Capital Raising: Without increasing the authorized capital, a company may face restrictions on raising additional funds, affecting its growth potential.
• Operational Delays: Non-compliance with the capital increase process can lead to delays in business operations and future fundraising activities.

Get Started with WeIncept Today!

Take the next step towards managing your business with the WeIncept's comprehensive solutions. Contact WeIncept at info@weincept.com or call +91 8595714205 to get started today. Let our experienced team guide you through the entire registration process so you can focus on building your business!