Hello, I have some doubts regarding Authorised and Paid-up Capital. A Pvt Ltd Company has an authorised capital of 10 lacs and paid-up capital of 1 lac.
1) Now, if the company takes a loan from a Bank, say about 5 lacs, then will the paid-up capital increase?
2) Also, if the company takes a loan from a bank exceeding 10 lacs, should the company increase its authorised capital or can it still continue with the 10 lacs authorised capital?
CAclubindia
