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How to deposit authorised share capital??

Aditya Sharma (finance advisory) (377 Points)

25 May 2019

A COMPANY WANTS TO BUY A LAND, FOR WHICH IT HAS TO INCREASE AUTHORISED SHARE CAPITAL.

MY QUE. IS HOW TO DEPOSIT/ SHOW INCREASED AUTHORISED SHARE CAPITAL??

BANK ACCOUNT HAS NOT BEEN OPENED YET. DO WE NEED TO DEPOSIT ONLY IN BANK ACCOUNT??

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4 Replies

anoop (g.m accounts) (214 Points)
Replied 26 May 2019

To increase authorised share capital, application is to be made in ROC along with the changed MOA and AOA. To increase paid up capital board and shareholder approval is required and only after that share application money can be taken

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Aditya Sharma (finance advisory) (377 Points)
Replied 05 June 2019

Thanks for your reply sir, please tell do we need to take money only in bank account of the company????

Vignesh R (executive) (26 Points)
Replied 01 July 2022

The standard way for a company to raise its authorised share capital is by way of a share issue. However, there are other ways of doing this. You can raise the money by converting all or some of your debt into shares. If a company has a lot of debt and it can't pay this off, then it can be worth converting some of this debt into shares. This effectively means that you are paying back the debts in the form of shares. This is more effective than converting debt into cash because then these shares can be sold on the public market and generate new cash. You can also raise money this way by selling equity stakes in the business to its investors.

sabyasachi mukherjee (25988 Points)
Replied 02 July 2022

as per norms provided in mca you are requested to increase the authorised capital. lets explain

no one has mentioned the basic procedures. an application to be made to the rigistrar of companies within the specified schedule and an application to be made therein.