Authorized capital which is the maximum amount of share capital that a company issues to its members or the shareholders. Initially, the companies registered by a small authorized share capital, which increase their capital as per the requirements of the Company such as issuing new equity shares and increasing paid-up capital.
As per the provisions of Section 61 of Companies Act 2013, the companies can increase its authorised share capital with specific procedure read with Section 13 and 14 of the acts which govern the alterations to the Memorandum of Association and Articles of Association of the company.
Process to Increase the Authorized Share capital:
â€¢ Verifying the Authorization in Article of Association
â€¢ Calling up on Board Meeting
â€¢ Issuing Notice of Extraordinary General meeting
â€¢ Holding Extraordinary General Meeting
â€¢ ROC Form Filing
â€¢ Approval of ROC