Increasing the authorized share capital of a company is a strategic move to raise additional funds or expand operations. At Ractax, we offer end-to-end services to assist companies in smoothly and legally increasing their share capital, ensuring compliance with the Companies Act, 2013.
What is Share Capital?
Authorized Share Capital: The maximum amount of capital a company is authorized to raise by issuing shares, as stated in its Memorandum of Association (MoA).
Paid-Up Share Capital: The actual amount of capital raised by issuing shares to shareholders.
Increasing share capital requires amending the company’s authorized share capital through a board resolution and approval from the Registrar of Companies (RoC).
Why Increase Share Capital?
- Business Expansion: Secure funds to support growth plans.
- Funding Needs: Accommodate new investors or issue additional shares.
- Compliance: Meet the minimum share capital requirements for specific business activities.
Why Choose Ractax for Increasing Share Capital?
- Expert Guidance: Navigate legal and procedural complexities with ease.
- Seamless Execution: From documentation to filing, we handle the entire process.
- Regulatory Compliance: Ensure alignment with the Companies Act and RoC requirements.
- Timely Service: Avoid delays with our efficient workflow.
- Transparent Pricing: Affordable solutions with no hidden charges.
Documents Required for Increasing Share Capital
- Memorandum of Association (MoA) and Articles of Association (AoA)
- Board meeting minutes approving the increase
- Shareholder resolution passed in the General Meeting
- Digital Signature Certificate (DSC) of the authorized director
- Details of the existing share capital and proposed increase
- Form SH-7 (for filing with the RoC)
Steps Involved in Increasing Share Capital
- Board Meeting: Pass a resolution to approve the increase in share capital.
- General Meeting: Obtain approval from shareholders through an ordinary resolution.
- Amend MoA & AoA: Update the authorized share capital limit in these documents.
- Filing with RoC: Submit Form SH-7 and supporting documents to the RoC within 30 days of the resolution.
- Approval: RoC reviews and approves the application, updating the company’s authorized share capital.
Key Benefits of Professional Services from Ractax
- Compliance Assurance: Avoid penalties by adhering to all regulatory requirements.
- Time Efficiency: We ensure the process is completed within the stipulated timelines.
- Expert Support: Get strategic advice to align share capital changes with your business goals.
Let Ractax Handle Your Share Capital Increase
With our expertise, increasing your company’s share capital is a straightforward and stress-free process. Focus on growing your business while we manage the legalities and compliance.
Contact Us Today to discuss your requirements and get started on increasing your share capital with ease!