Authorized Share Capital
Introduction:
Running any business requires more money over time. The requirement of funds may be on a long and short-term basis. Once a short-term requirement can be met by borrowing and taking loans from someone. But businesses don't run with just a small amount of money; it requires more money over time. For a private limited company, the authorized capital of that company can be increased. Since a Private Limited Company can be incorporated under the law-governed and regulated under the Companies Act, it is necessary to comply with the Act and Rules to make changes in the composition.
While registering a private limited company, the authorized and paid-up capital is to be specified in the company's MOA. Hence the company can issue new shares only within the limit of authorized capital mentioned in the MoA. The MoA needs to be amended if the company wants to issue shares above the specified limit.
If you also want to increase the authorized share capital and issue new shares, connect with our Vakilkaro Advisors. To raise the authorized share capital, you can email us at help@vakilkaro.co.in. Here Vakilkaro will efficiently perform all the procedures to increase the authorized share capital with the best lawyer.
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help@vakilkaro.co.in