Increase in authorized capital filing with MCA in India
Increase in authorized capital filing with MCA in India
A company's authorized capital is the maximum amount of capital that the company is allowed to raise by issuing shares. It is specified in the company's memorandum of association (MOA). The authorized capital can be increased by passing a special resolution at a general meeting of the shareholders.
To increase authorized capital filing with MCA in India, the company must follow these steps:
Verify the company's MOA. The MOA should contain a provision that allows the company to increase its authorized capital. If there is no such provision, the MOA will need to be amended before the authorized capital can be increased.
Convene a board meeting. The board of directors of the company must approve the increase in authorized capital before it can be put to a vote at the general meeting.
Hold an extraordinary general meeting (EGM). The EGM is where the shareholders will vote on the proposed increase in authorized capital. A special resolution requires the support of at least 3/4ths of the shareholders present and voting at the EGM.
File Form SH-7 with the MCA. Form SH-7 is the form that is used to notify the MCA of an increase in authorized capital. The form must be filed within 30 days of the EGM.
Pay the requisite fees. There are fees that must be paid to the MCA when filing Form SH-7. The amount of the fees will depend on the amount of the increase in authorized capital.
Once Form SH-7 has been filed and the requisite fees have been paid, the MCA will process the filing and update the company's records. The company can then issue new shares up to the amount of the increased authorized capital.
Here are some additional things to keep in mind when increasing authorized capital filing with MCA in India:
The increase in authorized capital must be for a valid reason. The company cannot simply increase its authorized capital for no reason. The reason for the increase should be stated in the board resolution and the EGM notice.
The increase in authorized capital must be properly documented. The board resolution, EGM notice, and Form SH-7 should all be kept on file by the company.
The increase in authorized capital must be reflected in the company's financial statements. The company's balance sheet and profit and loss statement should be updated to reflect the increase in authorized capital.
By following the above steps, companies in India can smoothly increase their authorized capital filing with MCA. This can be a helpful way for companies to raise additional capital to fund their growth and expansion plans.
Here are some additional resources that you may find helpful:
Here are some additional tips for increasing authorized capital filing with MCA in India:
Make sure that the increase in authorized capital is properly documented. This includes keeping copies of the board resolution, EGM notice, and Form SH-7.
File Form SH-7 within 30 days of the EGM. This will help to ensure that the MCA processes your filing promptly.
Pay the requisite fees when filing Form SH-7. The fees can be paid online or by check.
Keep your company's financial statements up to date. This will help to ensure that the MCA has accurate records of your company's authorized capital.
By following these tips, you can increase authorized capital filing with MCA in India smoothly and efficiently.
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