Authorized Capital Increase A Path to Financial Flexibility

In India, to run a company or business you need more funds over time & these funds can be required on a long & short-term basis. A short-term need can be satisfied by taking loans & advances, but in the long run, the company will need more funds. For a Private Limited Company, this can be done by simply increasing the company’s authorized capital. Since, the Private Limited Company is regulated under the Companies Act, 2013 to make alterations in the business structure it is important to follow the Companies Act and Rules. While incorporating the Private Limited Company, the paid-up & authorized capital is specified in the capital mentioned in the Memorandum of Association (MoA). If any Company wants to issue more shares than the specified limit, then amendments need to be made to the Memorandum of Association. So, it is necessary to check if the authorized capital of the company is adequate to increase the company's paid-up share capital. Scroll down to check more about how to increase Authorized capita