Increase Authorized Capital

The authorised capital of the company is that part of the capital which help a company to determine the amount of share the company is  able to issue at the time of incoporpation of company.so whenever a company want additional funds for business or issue additional shares they can increase their authorised capital for this purpose.

Increase in authorized capital is one of the most important event held in  company because it increase the upper capacity of company to raise further capital through new shares.

When  any two or more person start their company first time they can generally start their start-up journey with an amount of rupees 1,00,000 as an authorized capital,but step by step when their business grow they want to increase their authorised capital so they can issue new shares to get additional funds for their business.the increasing authorised capital is not an easy task we have to follow step by step procedure .

The need of increasing authorised capital arise in two matter:

• When you want to issue new equity shares.
• When you want to increase paid-up capital.

The total value of shares a company is eligible to issue is known as authorised capital of company.