Common Questions
Most Popular Questions
An increase in authorized capital refers to the process of raising the maximum amount of capital that a private limited company is permitted to issue to its shareholders, as stated in its Memorandum of Association (MOA).
Reasons may include business expansion, raising additional funds for investment, facilitating mergers or acquisitions, or meeting regulatory requirements.
The procedure typically involves obtaining board approval, shareholders' approval through a special resolution, filing necessary forms with the Registrar of Companies (RoC), and paying the prescribed fees.
Yes, a private limited company can increase its authorized capital multiple times, subject to compliance with legal requirements and obtaining necessary approvals.
Documents such as board resolution, special resolution, altered Memorandum of Association (MOA), Form SH-7, and necessary forms for filing with the RoC are required.
Late filing or non-compliance can attract penalties and potential legal complications.
Absolutely! CAA offers comprehensive support, from drafting resolutions and calculating stamp duty to document filing, record updates with relevant authorities, and guidance on potential tax implications.
The process must be completed within a specified timeline, including convening and conducting general meetings, filing forms with the RoC, and obtaining necessary approvals.
Non-compliance may lead to penalties, fines, legal action, rejection of application by the RoC, and adverse impact on the company's compliance status and reputation.
Yes, Avenue Advisory provides expert assistance for increasing authorized capital, including drafting of resolutions, preparation of documents, filing with the RoC, and compliance monitoring.
Avenue Advisory ensures compliance with the authorized capital increase procedure by guiding clients through the process, preparing accurate documents, and liaising with the RoC for timely approvals.
Outsourcing to Avenue Advisory ensures accuracy, compliance, timely processing, and expert support, relieving companies from the administrative burden and ensuring smooth increases in authorized capital.
No, increasing authorized capital only creates the legal framework. Issuing additional shares is a separate process requiring further filings and shareholder approval.
