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paid up capital
my co. is a pvt. ltd co. hvng authorized capital of Rs.1.5 crore nd pais up capital of Rs. 25 lacs. now the company is in requirement of funds thereby wishes to increase the paid up capital to 75 lacs.what is the procedure for such increase? and further what will be the status of the company regarding the small company? plz guide
Replies (9)
A private limited company may increase its paid up share capital by following ways:
- Normal Allotment of fresh shares
- Bonus Issue
- Issue of shares for consideration other than in cash.
according to small company definition in companies act 2013 and further amended on feburary 2015 if paid up share capital is below 50 laks rs then that co. will be treated as small company.
thx fr quick reply nehaji
plz let me know that if it is normal allotment of fresh shares than BR is sufficient
A pvt company can increase its paid up share capital by issuing future share to thier existing shareholder(right issue) or bonus share issue or by private placement (fresh issue) but bonus share does not involve any inflow of money...if company's post issue capital is 75 lacs then it will not be considered as a small company.
if shares are issue to other than existing shareholder it requires board resolution and special resolution.( i am a student not a professional )
my case is of issuing further shares to d existing shareholders..then BR is sufficient
what does br stands for
but guys if the company prescribed such higher amt..then the limit for small company extends to rs.5 crores...read section 2(85)
BR stands for Board Resolution..further regarding section 2(85), u r rgt navin ji...thnk u
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