Authorise capital

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miss tanveer ahuja (Querist)
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14 June 2012 dear experts,

pls clear my query regarding- my co. is a pvt ltd co. having paid up and authorise capital of Rs.20,00,000. Do i need to increase my authorise capital limit???

If yes what is the logic behind that so that i can convence my director to do that Provisionally and generally??

pls reply as soon as possible

thanks

CS SIDDHARTHA BANIK

CS SIDDHARTHA BANIK (Expert)
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14 June 2012 Hi,
Minimum paid up share capital of a pvt. Ltd. Company is Rs. 1,00,000/-, which you have fulfilled.
Therefore, in normal circumstances you are not required to increase your authorize share capita.

Thanks,

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Charu Srivastava

Charu Srivastava (Expert)
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14 June 2012 Agree with the above view...
Minimum requirement of paid-up Capital is Rs. 100,000.So u r not required to increase the capital unless u require more funds...

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Ajay Mishra

Ajay Mishra (Expert)
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14 June 2012 Hi

You can says to management:

The existing Authorized Share Capital and paid up capital of the Company is Rs. 20,00,000. In view thereof, the expansion & long term growth plans of the Company which necessitates broadening the capital base, the Board of Director of the Company will decided to increase the Authorized Share Capital of the Company to Rs. 20,00,000 to...........as u decide.

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