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paid up capital

Shailvi Agarwal (COMPANY SECRETARY) (184 Points)

27 July 2017

my co. is a pvt. ltd co. hvng authorized capital of Rs.1.5 crore nd pais up capital of Rs. 25 lacs. now the company is in requirement of funds thereby wishes to increase the paid up capital to 75 lacs.what is the procedure for such increase? and further what will be the status of the company regarding the small company? plz guide

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9 Replies

Neha Jain (Chartered Accountant) (1085 Points)
Replied 27 July 2017

A private limited company may increase its paid up share capital by following ways:

Normal Allotment of fresh shares
Bonus Issue
Issue of shares for consideration other than in cash.

according to small company definition in companies act 2013 and further amended on feburary 2015 if paid up share capital is below 50 laks rs then that co. will be treated as small company.

Shailvi Agarwal (COMPANY SECRETARY) (184 Points)
Replied 27 July 2017

thx fr quick reply nehaji

Shailvi Agarwal (COMPANY SECRETARY) (184 Points)
Replied 27 July 2017

plz let me know that if it is normal allotment of fresh shares than BR is sufficient

Ankur Bhagat Jain (18 Points)
Replied 27 July 2017

A pvt company can increase its paid up share capital by issuing future share to thier existing shareholder(right issue) or bonus share issue or by private placement (fresh issue) but bonus share does not involve any inflow of money...if company's post issue capital is 75 lacs then it will not be considered as a small company.