Error in Paid Up Capital

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Piku (Querist)
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27 September 2024 A company's master data is showing paid up capital of 1000000 instead of 100000. How can one rectify this? The error is because in Spice Part B, the details at the beginning is given 1000000 but later the break up and MOA has paid up capital of Rs 100000, how to rectify this error Please help. The company is newly incorporated

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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12 August 2025 To rectify the paid-up capital discrepancy in the company’s master data (showing ₹10,00,000 instead of ₹1,00,000), caused due to mismatch in Spice Part B and MOA during incorporation, here’s what you can do:
Steps to Rectify Paid-up Capital Error in a Newly Incorporated Company
1. Identify the Source of Error
The initial figure of ₹10,00,000 in Spice Part B (INC-7 or SPICe+) is incorrect.
MOA and later breakup correctly shows ₹1,00,000.
MCA system has accepted ₹10,00,000 as paid-up capital due to initial entry.
2. File an Amendment with MCA
The error can be rectified by filing Form INC-24 (Application for approval of amendment of MOA/AOA) or Form INC-22 (Change of registered office or other details) depending on what is applicable.
In your case, since the error is in paid-up capital, you need to file INC-24 for amendment in MOA regarding capital clause.
3. Process to Amend Paid-up Capital Clause in MOA:
Pass a Board Resolution approving the amendment to the capital clause in MOA.
Convene a General Meeting of shareholders to approve the alteration in capital clause.
File Form MGT-7 (Annual Return) and SH-7 (for alteration of capital) along with INC-24 with MCA.
Attach the corrected MOA reflecting the paid-up capital of ₹1,00,000.
4. Supporting Documents:
Copy of Board Resolution and Shareholder Resolution approving change.
Corrected MOA document.
Alteration forms and fees.
5. After MCA Approval:
Once approved, the MCA portal will update the paid-up capital in master data.
You can then download the updated Certificate of Incorporation (COI) or amended MOA showing correct paid-up capital.
Important Notes:
The paid-up capital in Spice Part B and MOA must be consistent at the time of incorporation to avoid such issues.
Since the company is newly incorporated, rectification at early stage is easier.
Rectification should be done as soon as possible to avoid future compliance or audit issues.
Summary
Step Action
1 Pass Board and Shareholders Resolution
2 File INC-24, SH-7 with MCA
3 Attach corrected MOA and resolutions
4 MCA approves amendment
5 Master data updated with correct paid-up capital

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