What are the compliances needs to increase paid up capital?-Private Limited Company

Save Share

This query is : Resolved

Quick Summary

To increase the paid-up capital of a Private Limited Company, new shares must be issued and approved at a Board Meeting. This process involves informing the Registrar of Companies. Companies can choose between a rights issue to existing shareholders or a private placement of new shares. Specific forms like PAS 3 and PAS 4, along with MGT 14, need to be filed with the ROC depending on the method chosen.

G Prathiba

G Prathiba (Querist)
Follow

30 January 2023 Explain the compliances needs to increase paid up capital?-Private Limited Company.

Thanks in advance.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

31 January 2023 For increasing the paid-up share capital of a company, new shares must be issued and allocated at a Board Meeting with the consent of all the Members of Board of the company. The return of distribution should be conveyed to the concerned Registrar of Companies of the Companies Act, 2013.

Message likes : 1 times

Jatin Bajaj

Jatin Bajaj (Expert)
Follow

09 February 2023 For increasing the paid up share capital of the Company, the Company can either opt for right issue of shares- which means issue of shares to the existing shareholders on pro rata basis and another is issue of fresh shares through private placement.

For Right issue of shares, board resolution is passed in board meeting, the Company need to file form PAS 3 within 30 days of passing the resolution

In case of Private Placement, form PAS 4 shall be filled along with MGT 14 for approval of offer letter. Further form PAS 3 shall be filled within 15 days of allotment of shares. (Money in case of Private Placement shall not be utilized till the allotment is completed and form PAS 3 i s filled before ROC

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now