Increase in share capital of a private company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 January 2013 Hello members,
A private limited company increased its authorized share capital and now has to raise its share capital from persons other than promoters.
How can it do so as private company can not receive funds from outsiders.
I want to know the process/steps or formalities (board resolutions etc.) for receiving funds share application and allotment amount from outsiders for raising capital.

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
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20 January 2013 A private company can receive Share applications from persons other than promoters, subject to maximum shareholders of 50 including all.Loans can not be raised from outsiders in violation of Sec 58 A. But for share application money, outsiders can contribute.However allotment will be done on the decision of the Board by passing a resolution.After allotment, Form 2 has to be filed within 30 days, with requite fee to ROC.

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