Change in Authorised Capital of Company
The authorized capital is the maximum amount of capital which a Company can raise through the issue of shares to its shareholders. Authorized share capital is mentioned in the Memorandum of Association of the company. The company can raise capital up to this amount.
But a company may, during its course of business operation, require additional capital for expansion, meet working capital requirements etc. An increase in authorized capital is required for issuing new shares and inducting more capital into the company.
This process is complicated and time-consuming as it requires permissions of the Registrar of Companies (ROC) and other filing requirements.
FAQ on Change in Authorised Capital of Company:
What are the compliances for Change in Authorised Capital of Company?
SH-7 Notice to Registrar of any alteration of share capital MGT-10 Changes in shareholding position of promoters and top ten shareholders
What is the minimum share capital requirement?
Private Company 1,00,000 Public Company 5,00,000
What is the maximum share capital requirement?
- There is no limit for maximum capital.
What is the difference between Authorized Capital and Paid up capital?
- The Authorized Capital of the Company is the maximum limit upto which a Company can issue shares and Paid Up Capital is that part of the Authorized Capital for which Shareholders have made the investment into the Company.
What is the time limit to file change of capital documents with ROC?
- The time limit is 30 days from passing of the Board Resolution for Increasing of Authorized Share Capital