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Increase of Authorised Share Capital

karnakar reddy ponna (accountant) (36 Points)

18 November 2010

we are the private limited company, we want to increase the authorised share capital for two company.

for one company from 1Lakh to 20Crores

another one company from 1Crore to 20Crores

please give me suggestion for decrease of ROC Fees & Stamp Duty

Thanks & Regards

Karnakar Reddy

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6 Replies

Ajay Mishra (Company Secretary) (74337 Points)
Replied 18 November 2010

For increasing of authorised capital, it is mandatory to pay statutory fee as per Schedule X of the Companies Act, 1956.

There is no provisions to decrease statutory fee and stamp duty.

Regards

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Ajay Mishra (Company Secretary) (74337 Points)
Replied 18 November 2010

Procedure for increase in authorised capital of the company

1. Convene a Board Meeting after issuing notices to the directors of the company to decide about the increase and to fix the date, time, place and agenda for convening a General Meeting.

2. To pass an Ordinary Resolution (Special Resolution if so required by articles) for the same.

3. Download Form -5 from www.mca.gov.in

4. Fill the details required such form except signature of the concerned person.

5. Opt the option to pay stamp duty electronically along with ROC fee on Form-5 with concerned ROC.

6. Please attached altered MOA and AOA with the Form-5 filed with concerned ROC .

7. File physically MOA along with stamped form-5 with concerned ROC (if required).

8. After approval of Form-5 from ROC make necessary changes in MOA and AOA and in all other papers and documents.

If you are increasing Authorised Capital by Special Resolution or also change in Article of Association it is required to file Form 23 with concerned ROC within 30 days from the date of passing such resolution.

CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 18 November 2010

To increase the Authorised Share Capital you have to mandatorily pay pescribed fees. There is no option.

Neha Gupta (PCS) (377 Points)
Replied 18 November 2010

YES, you can only avoid the additional fees not statutory as provided in Schedule X of the Companies Act, 1956, by submitting the documents and form 5 with in due time that is with in 30 days from date of event (date of passing General meeting resolution).

Manisha (CA & CS) (161 Points)
Replied 18 November 2010

Originally posted by : CS Ankur Srivastava
	To increase the Authorised Share Capital you have to mandatorily pay pescribed fees. There is no option.

I totally agree with Mr. Ankur. I have recently handled a similar situation and finding no other way to reduce the duties, we have paid the duty as precribed under the act.

Regards