What is the authorized capital?
The authorized capital is the highest amount capital of the company that can be increased further with the help of shareholder and legal board members, by issuing the shares to the shareholders.
How many types of capital the business have?
There are three types of capital in a business
- Registered
- Authorised
- Nominal
The memorandum of association performs an essential role in a company as the capital of the company is stipulated the bye MOA.
What can be the procedure of an increase in the authorized capital of the company
- Legal board meeting is a must for their approval for increasing the capital of the company
- Approvals of the shareholder is must
- The particular result is taken in the EGM meeting filling it to ROC form -MGT-14
- Now apply for an increase in authorized capital
What can be the benefit of increasing the authorized capital of a company?
- It improves the capability of the company to raise its capital for expending its company profile.
- Can get a secure loan by the banks for their company as they as having a good capital business. It will also increase the goodwill of the business.
Frequently Ask Question
At which time the authorized capital can increase?
It can be increased at any time, with the legal formalities. As per the company act.
What is the minimum paid capital?
As per the company act 2013, the amount should be 1 lakh for the company for investment.
Did share capital can be the current assert?
Share capital is the money, which is an investment by the one in their business.
What can be the benefit of Increased Authorized capital?
A company can grow itself without making any debt or by taking money from the market to expand their business.
Which kind of form I have to fill, for an increase in authorized share capital?
The form Sh-7 can fill for improvement in authorized capital.
Stamp duty price on an increase in authorized share capital?
An amount of Rs 1000 on every 5 lakh rupees can be used as stamp duty.
What paid-up capital means?
When the company trades its shares directly to the investors in the dominant market, it is called paid-up. This kind of company can’t increase their capital.
For what the word called up capital stand?
Wealth means money by which the business can be started.
How authorized capital is can be finalized?
The shareholders can decide it.
How many types of capital are?
There are four kinds of capitals
1. Debt capital.
2. Equity trading
3. The working capital
Company can decide itself which type of capital they want to use.