Authorized Capital

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vikram b s (Querist)
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10 December 2009 Hi,
Can anyone please let me know the process to Increase Authorized Capital?

Also if we want outside investors to transfer funds into our capital, should we increase our capital & then take their funds? Or is there an option to collect thier funds before making an Increase in Aothorized Capital?

Regards
Vikram B S

Rasesh

Rasesh (Expert)
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10 December 2009 The procedure for increasing authorised capital:
1) Board Resolution and a resolution in the Board for EGN/AGM
2) Pass the necessary resolution in the EGM/AGM
3) File Fom 5 alongwith necessary Stamp Duty and Registration Fees

If you want funds immediately, you may show the funds them as loans. After you get the authorised capital increased, convert the loans into share capital. However, the best course of action is to increase the authorised capital first and then obtain the funds.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 December 2009 Or the funds received can be shown as share application money pending allotment till the time the same are not alloted

vikram b s

vikram b s (Querist)
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10 December 2009 Dear Sir,
Thanks to both of you, this looks very much impressed & if after we receive funds & show the funds as loans. How to convert the loans into share capital?
Please help to do this Accounting Procedure.

Regards
Vikram B S