Change In Authorized Capital Of Company

The authorized capital of a company is also known as the authorized share capital in the highestnumber of shares that a company is sanctioned by its constitutional documents to issue to shareholders. In simple words, the official capital is decided by the shareholders. When a firm is first formed, the subscribers to the communication decide the authorized capital. Whereas, the authorized capital is the limit to which the companies can raise shares to the shareholders and not beyond it.

Benefits of increasing authorized capital
  • It allows further issue of capital
  • Increase in borrowing capacity
  • Change in authorized capital of company boosts internal funding
  • Increase the paid-up capital and much more
Documents that are needed to increase authorized capital:
  • Digital signature certificate
  • MoA&AoA
  • Pan Card

Change In Authorized Capital Of Company