banner_ad

Advantage of increasing Authorized capital

Others 7747 views 3 replies
User Avatar

CA
30 Points Posted on 28 February 2008

What are the advantages of increase authorized capital?

Eg: If a pvt ltd company has a capital of 15 lakhs and wants to increase it to 1 crore, will it have any advantages?

 

 

Reply Share Follow
On 28 February 2008 at 13:47 Report
Replies (3)
User Avatar

Service
1461 Points Posted on 28 February 2008
Firstly there are charges/fee to be paid. for exp. if you have auth capital of 15 lakh and you have to increase it you will have to pay additional charges. Similarly if in future you want to increase your capital you need not waste your time to increase your authorised capital
Reply
On 28 February 2008 at 13:52
User Avatar

DGM-F & A
1734 Points Posted on 28 February 2008
if u have authorised capital,u can increase the capital of promotors/issue shares.
Reply
On 28 February 2008 at 15:32
User Avatar

PRACTISING CA
4283 Points Posted on 28 February 2008
Banks prefer to give loan dependiong on the authorised capital. The ideal debt equity ratio is 2:1. So if you increase the authorised capital, you will get the loans in the above proportion. But you need to incur certain costs at the ROC for increasing the share capital.
Reply
On 28 February 2008 at 21:33


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topic

More recent discussions | Post

Related Topics
Loading

Latest Job Openings

View all
Company
26 May 2026
Senior Accountant cum purchase Manager

Vardhaman Group of India

Pimpri Chinchwad

CA Inter

View Details
Company
19 May 2026
Fundraising Expert

MentorsWorld Ventures Private Limited

Ahmedabad

Others

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 17 May 2026
CA Article /Trainee

Malik Sunil & co

New Delhi

CA Foundation

View Details
Company
07 June 2026
Tax Associate

Rajkumar Jain & Co.

Ahmedabad

Graduate (Any)

View Details
Company
14 May 2026
Senior Associate

ABHISHEK SHANKAR AGARWAL & ASSOCIATES

Kolkata

CA

View Details
Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details