Procedute to increase in authorized capital of company

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Kumar Nayudu (Querist)
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07 December 2012 Dear sir or madam,my name is kumar.pursuing company secretary final.i have one doubt regarding authorized capital.

sir, how to increase existing authorized capital?will you give brief explanation procedural matters regarding hiking of authorized capital?

and my company wants to increase authorized capital.right now we have Rs29.61l cr.so we decided to increase 30 Cr and above.sir we decide to increase 20+10.is it better to hike?or is better to increase 30 cr? and if you have any ideas please share me sir.
as well as you should give procedural matters.i hope that i will get your answer in very soon.

Thanks and Regards.

Kumara Swamy.Matta

Ajay Mishra

Ajay Mishra (Expert)
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07 December 2012 Hi

Procedure for increase in authorised capital of the company

1. Convene a Board Meeting after issuing notices to the directors of the company to decide about the increase and to fix the date, time, place and agenda for convening a General Meeting.
2. To pass an Ordinary Resolution (Special Resolution if so required by articles) for the same.
3. Download Form -5 from www.mca.gov.in
4. Fill the details required such form except signature of the concerned person.
5. Opt the option to pay stamp duty electronically along with ROC fee on Form-5 with concerned ROC.
6. Please attached altered MOA and AOA with the Form-5 filed with concerned ROC .
7. File MOA along with stamped form-5 with concerned ROC (if required).
8. After approval of Form-5 from ROC make necessary changes in MOA and AOA and in all other papers and documents.

If you are increasing Authorised Capital by Special Resolution or also change in Article of Association it is required to file Form 23 with concerned ROC within 30 days from the date of passing such resolution.

Ajay Mishra

Ajay Mishra (Expert)
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07 December 2012 I will suggest you to increase your authorised capital upto 30 cr, because increasing of authorised capital is not a regular business, in require changes in MOA/AOA and other procedural compliance.

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