How Does a Company Increase Authorized Capital?

Admin 2023-03-11

Authorized capital is the maximum amount of issued capital by the company to the subscribers. It is mentioned under the capital clause of the memorandum of association (MOA). It is also called nominal capital which can be increased as per the company’s requirement as it cannot issue shares more than its authorized capital. The benefits of the increase are growth in business, additional funds for shareholders, enhanced borrowing capacity, expanding share capital, etc.

Process to Increase Authorized Capital

Admin 2023-03-11

Authorized capital is the maximum amount of capital issued by the company. It is given under the capital clause of the memorandum of association. It is also known as nominal capital which can be increased as per the company’s requirement as it cannot issue shares more than its authorized capital.

difference between authorized capital and paid up capital

Authorised Share Capital – Meaning and Purpose

Admin 2023-03-09

Authorised Share Capital is the number of shares that a company can issue as stated in its memorandum of association or its articles of association. The Authorised capital is part of its MOA under the capital clause. At the time of Incorporation, the company submits a formal document to the Registrar of companies to form the company. The amount of share capital may change with time if the shares are issued to the public.

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How Does a Company Increase Authorized Capital?

Process to Increase Authorized Capital

Authorised Share Capital – Meaning and Purpose

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