Increase in Paid-Up Capital

Increase in paid-up capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares themselves plus amounts in excess of par value.

Paid-up share capital is essentially the amount for which shares are issued to the shareholders of a company and the payment is done by the shareholders.

Generally, this amount is raised as Initial Public Offering and forms part of the company’s Finance. However, the paid-up capital of the company can never be more than its authorized capital.

Paid-up capital represents money that is not borrowed. A company that is fully paid-up has sold all available shares and thus cannot increase its capital unless it borrows money by taking on debt. A company could, however, receive authorization to sell more shares.

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You can increase the paid-up share capital in your company by following these steps-:

  • First, assemble executive Meeting or Board Meeting for distribution of value offers and pass important determination for apportioning. The board of directors should mutually come upon a final decision.
  • Once you have decided to increase paid-up share capital in your company we will file Form 2 in Ministry of Corporate Affairs
  • Fill Form 2 and attach rundown of allottee or List of Allottee
  • Our team will certify your form 2 from a CA and submit the same

Documents required to increase paid-up capital in a company

  • Articles of Association
  • List of existing shareholder
  • Proposed paid-up share capital