How to increase Authorized share capital of a company
Authorized share capital, also known as nominal capital, is the maximum amount of capital a company is legally permitted to raise through the issuance of shares. This capital is stated in the company's Memorandum of Association (MoA) and can only be increased by following a specific procedure outlined under the Companies Act, 2013. For companies seeking to increase their Authorized share capital, it is important to follow a well-defined legal process. The role of a practising company secretary , particularly in cities like Coimbatore, becomes crucial in ensuring the process is carried out smoothly and in compliance with all applicable regulations. Why Increase Authorized Share Capital? Before delving into the procedure, let’s first understand the reasons a company might need to increase its Authorized share capital: Business Expansion: A growing company might need additional capital to finance new projects, infrastructure, or geographical expansion. Attracting N...