Easy process to Transfer of company Equity shares with Make My Filing
Authorised Capital means the maximum amount upto which company can issue shares to its shareholders, authorised capital amount mention in memorandum of association under capital clause and minimum authosied capital for private limited and public limited company is Rs. 1 Lacs and 5 Lacs respectively. For increasing the Authorised Capital, the company has to pay Stamp Duty to the State Government and the ROC Fees where registered office of state situated. The Stamp Duty amount varies from state to state.
For increasing authorized capital a resolution must be passed by the Board of Directors where authorisation must be provided for increasing the authorised capital of the company and making the necessary changes to the MOA and AOA of the company.
STEP-1: First to Obtain Board of Directors Approval for Increase of Authorised Share Capital of Company
To decide on the new limit of the authorised capital or alteration of the capital clause of the MOA, directors must meet in a legally convened board meeting. The notice sent to directors must contain the clear agenda of the meeting.
STEP-2: Convene an Extraordinary General Meeting (EGM) of Shareholders
The next important step is to seek approval of the shareholders of the company. The decision of shareholders can be taken only in a valid extraordinary general meeting. To convene an EGM, the directors must send at least 21 day notice to every shareholder before the date of EGM. The notice of EGM must contain the agenda, draft of the proposed resolution to be passed as a special resolution.
STEP-3: Filing of Special Resolution to concerned Roc in Form -MGT-14
The special resolution means a decision taken by more than 75% voting rights. The special resolution once adopted in the EGM is to be filed before the ROC for their approval. The certified copy of the resolution is filed in Form-MGT14 with the prescribed fee within 30 days of the passing of the resolution. The altered MOA and the copy of the minutes of the meeting of EGM where the special resolution is passed need to be attached to the form.
STEP-4: Filing of application for Increase in Authorised Capital in SH-7
Once the approval of the shareholders is obtained with the passing of the special resolution in the EGM then authorised director shall file an application in Form SH-7 with the ROC with attachments ie the copy of altered MOA & AOA, Special Resolution etc. With the approval of the SH-7, the authorised capital of the company stands increased.
The whole process take around 20-25 business days.