RBI Approvals for increase in authorised share capital

For increase in authorised capital no need to take RBI approval.

For procedure kindly check the link below:

Increase in Authorised capital     

Dear Neha

Their is no need to take approval form RBI for increasing Auth. Capital and also no need to take permission from RBI or any other Authority for issuing it only intimation is required for issued capital to NRI's as per FC-GPR

Regards

Nitin Grover

Dear Neha,

For increasing your company's authorised capital there is no need to get any approval from the RBI from FEMA prospective provided the company activities are under automatic route.If it not so then it is advisible to take appropriate approval from the RBI or FIPB depending upon what the present activities are of your company and also the status of the remmiter that is non-resident who is remmiting such money in the company.

Assuming that your company activities are covered under automatic route and hence no approval is required.Only you have to intimate the RBI towards receipt of money from outside within 30 days from the date of receipt of money in the company's account.Post receipt when at the time of any allotment of any share to the non-resident you have report to the RBI through the form FC-GPR.

Trust this is clear.Kindly get back for any further help.

Thanks & Regards

Originally posted by : Kumar
	Dear Neha, For increasing your company's authorised capital there is no need to get any approval from the RBI from FEMA prospective provided the company activities are under automatic route.If it not so then it is advisible to take appropriate approval from the RBI or FIPB depending upon what the present activities are of your company and also the status of the remmiter that is non-resident who is remmiting such money in the company. Assuming that your company activities are covered under automatic route and hence no approval is required.Only you have to intimate the RBI towards receipt of money from outside within 30 days from the date of receipt of money in the company's account.Post receipt when at the time of any allotment of any share to the non-resident you have report to the RBI through the form FC-GPR. Trust this is clear.Kindly get back for any further help.   Thanks & Regards

 Thank you sir for the reply

As per my own understanding increase in authorized capital has nothing to do with automatic or FIPB route. In fact increase in authorized capital is not in the domain of RBI and simply involve ROC procedure.

Things may be different for a NBFC company. But for a NBNFC filing with ROC is enough.

Regards  

Mr Ankur Garg

I think this is what is spelt out but what  Mr Kumar says  is that on receipt of money from abroad towards capital we have to intimate RBI within 30 days and not for increasing its share capital we require RBI Permission

thanx

Variation of Authorized capital fall under Companies Act 1956.So ROC approval is required for that.Its nothing to do with RBI/FIPB...But at the same time you need to check the ceiling / propertion (%) of foreign Equity/FCCB participation is remain intact with requirements of FDI guidelines all the time. It has an overiding effect over Companies Act.