Increase authorized capital is an important step for companies looking to expand and grow their business. Authorized capital refers to the maximum amount of capital that a company is authorized to issue to its shareholders. This capital is used to finance the company’s operations, investments, and expansion plans. However, as a company grows and its capital requirements increase, it may need to increase its authorized capital. This can be done through the online process for increasing authorized capital, which is simple, efficient, and cost-effective.
The process of increasing authorized capital begins with the company’s board of directors passing a resolution to increase the authorized capital. This resolution must be approved by the shareholders in a general meeting. Once the resolution is passed, the company must file an application with the Registrar of Companies (ROC) through the Ministry of Corporate Affairs (MCA) portal.
Increase Authorised Capital – Online Process: A Simple and Efficient Way to Expand Your Company’s Capital Base
When a company wants to expand its operations or invest in new ventures, it may need to increase its authorised capital. This is the maximum amount of capital that a company is allowed to issue to its shareholders. In the past, increasing authorised capital was a complex and time-consuming process that required a visit to the Registrar of Companies (ROC) office. However, with the advent of online services, the process has become much simpler and more efficient.
In this article, we’ll explore the benefits of the online process for increasing authorised capital.
Ease of Use
The online process for increasing authorised capital is a simple and straightforward process that can be completed from the comfort of your own office. The process involves submitting an application to the ROC through the Ministry of Corporate Affairs (MCA) portal. The application should include all the relevant information about the proposed increase in authorised capital, along with supporting documents. Once the application is submitted, the ROC will review and process the application, and if approved, issue a certificate of registration.
Time-Saving
The online process for increasing authorised capital is significantly faster than the traditional process. In the past, companies had to physically visit the ROC office, wait in line, and submit their application in person. This process could take days or even weeks to complete. With the online process, the application can be submitted and processed within a matter of days, saving valuable time and resources.
Cost-Effective
The online process for increasing authorised capital is also more cost-effective than the traditional process. In the past, companies had to hire lawyers or other professionals to complete the necessary paperwork and file the application with the ROC. This could be a costly process, especially for small or medium-sized enterprises. With the online process, the application can be completed and submitted by the company’s own staff, eliminating the need for expensive legal or professional services.
Conclusion
In conclusion, the online process for increasing authorised capital is a simple, efficient, and cost-effective way for companies to expand their capital base. By eliminating the need for physical visits to the ROC office, the online process saves time and resources, making it an ideal solution for companies looking to grow and expand their operations. With the help of the Ministry of Corporate Affairs portal, companies can easily and quickly apply for an increase in their authorised capital and receive a certificate of registration, allowing them to move forward with their expansion plans.