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Change In Authorised Capital

3150* Basic Package

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Overview

Any company in India may wish to increase its authorized share capital before the issuance of new share equity and the paid-up capital. The authorized share capital is the total worth of the shares that an entity can issue, While the paid-up capital is defined as the entire value of the shares that the entity has already issued. The paid-up capital of a company should never exceed the value of authorized capital. Thus if any entity has authorized capital of INR 10 lakhs and the paid-up capital of INR 10 lakhs, it will have to introduce new shareholders. The entities can do so by:

1) Issuing new share and increasing the authorized share capitals or,

2) By transferring the shares from existing stakeholders to new.

Verifying the Articles of Association of the company

Before initiating the steps to increase the authorized share capitals, you must verify your AOA. It will help you ensure there are provisions in the AOA to increase your entity's authorized share capital. If in case, you don't find any such provisions, then you must make changes in the AOA of your company.

Note: most of the AOAs have the facility to increase the authorized share capital

Holding board meeting:

If any company wants to increase its authorized share capitals, It must hold a board meeting. In the board meeting, the company has to seek approval from the board. The board must agree to increase the share capitals. Then you have to Schedule a date, time, and place to hold a specific meeting with the shareholders. You have to seek approval from the shareholders for increasing the share capitals and make changes in the MOA of the organization.

In the final step, you need the approval from the board of directors, company secretary present in the meeting; based on the approval of all authorized individuals you can file to increase the share capitals

General meeting with the shareholders:

It is essential that an entity must seek approval from its shareholder. So, you have to conduct a general meeting as per the time and date mentioned in the notice. The approval of the stakeholders must be taken in the form of an ordinary resolution.

Filing ROC forms

After seeking the approval from the meetings with the board and stakeholders, you must file form SH-7. This form must be recorded within 30 days of passing the resolution. You also have to pay the prescribed government fee to increase the authorized share capital.

EPF Charges

1) Contribution is fixed to the closest rupee for every employee, their share, pension amount, and EDLI contribution.

2) Difference between employee Share and Pension Contribution is The Employer Share.

3) EPF Administrative charges per month are, in general, a minimum of Rs. 500/-.

4) When a venture doesn’t have any member in the month, a nominal administrative charge of 75 INR is applied.

5) Amount per month as per the EDLI Administrative charges is minimum Rs 200/-is payable.

6) When a venture has no member in the month, the least administrative charge applied is Rs. 25/-

7) If a venture is relaxed from PF Scheme, Inspection charges at 0.18% of 5 INR- is payable in place of Admin charges.

8) If a venture is excused under EDLI Scheme, Inspection charges at 0.005%, of at least Re 1/- is payable in place of Admin charges.

Date of payment for PF Filing with EPFO

Employers prior to making payment for the employees should cut the contribution of the employees from their daily payments. Both the employee and employer share are to be paid to the EPFO, within 15 days of ending every month.

Essential requirements for PF Registration

EPF is primarily a scheme regulated under the norms of EPFO act. PF registration is meant for the ventures those having more than 20 employees or more than that, as per specific conditions and relaxations.

Making an application for the PF Registration

PF registration is essential for the ventures having 20 or more employees. Those having under 20 employees would be essential to have PF registration. Each of the employees gets eligibility for PF straight from the day of employment, and the responsibility of reducing the amount is with the employer. 12% PF contribution must be evenly distributed among the employees, as well as the employers. PF cut at 10% is meant for those ventures with below 20 employees.

Document Required

  • Notice that relates to the EGM
  • True Authorized of the resolution passed in a meeting
  • Change in the Memorandum of association; it must show an increase in Authorized capital

If you follow all the procedures prescribed under the Companies Act and the companies rule, the ROC will pass your file to increase the authorized share capital. You can see the new authorized share capital of the company in the MCA portal.

Time Lines

  • (10 to 15 Days)
  • Purchase the Service
  • Upload / send the Documents
  • Discussion with expert
  • Filing of application with registrar authorities
  • Receipt of Registration Certificate
  • Confirmation to client

Service Covered

Pricing for what you want required service

Basic

3150*
  • Expert Consultation
  • Increase in authorised capital of upto Rs.10 lakhs.

Business

4050*
  • Expert Consultation
  • Increase in authorised capital of upto Rs.25 lakhs.

Enterprise

4950*
  • Expert Consultation
  • Increase in authorised capital of upto Rs.100 lakhs.
  • Notes:
  • * This price is inclusive of all Govt filing fee and excluding GST amount.

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