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Increase company capital

gaurav tayal (student) (35 Points)

17 April 2011

hey friends i want to know how to increase authorised capital and paidup capital of a company in pvt ltd

without paying any tax....

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6 Replies

CA Sandeep Kumar (Audit Assistant) (804 Points)
Replied 17 April 2011

No need to pay tax to increase share capital of a company.

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Nitin Grover (CS) (1228 Points)
Replied 17 April 2011

Dear Gaurav

there is no provision to pay tax on increasing of Auth. Share Capital or Paid up share capital.

You have to Fees for this to ROC & its mandatory.

Regards

gaurav tayal (student) (35 Points)
Replied 17 April 2011

wanaa know its procedure

and wanna know abt issuing company shares on premium

ans increase company capital

CS Shivi Reddy (COMPANY SECRETARY) (175 Points)
Replied 18 April 2011

Dear Gaurav,

For increasing the authorised capital of a co. the Articles of the co. must give power to increase in authorised capital otherwise the arricles have ton be altered by passing a special resolution at a general meeting. For increase in authorised capital an ordinary resolution at the general meeting has to be passed. The proposal for alteration of the Articles and the proposed increase in authorised capital will be approved in the board meeting. the draft notice of calling the general meeting specifying the alteration of articles and the proposed increase in authorised capital has also to be approved in the same board meeting. the notice has to be sent to all the shareholders by giving 21 clear days notice along with the explanatory statement. The resolutions may be passed at the same meeting.

e-Form 23 has to be filed for special resolution, along with altered certified copies of MOA, AOA and the explanatory statement within 30 days of the passing of the resolution at the GM. for ordinary resolution like increase in share capital no e-form 23 is required to be filed, only e-form 5 for increase in share capital will do.

Stamp duty is required to be paid on e-Form 5 for the amount of increase in authorised capital as per the state in which the registererd office of the company is situated.