As the company grows its size of operation also increases. At a later stage, the company while performing its business operations may need more funds for expansion of its business or, to meet the expenditure requirements that may arise in future. These requirements can be met by increasing the authorized share capital of the company. The authorized share capital is the maximum amount of shares value which a company can allot to its shareholders.

Whenever the company requires fund in business the company can increase its authorized according to its requirements by passing Ordinary or Special Resolution in General Meeting and by following the procedures as mentioned in the Companies Act, 2013 and subject to confirmation by ROC.

Eligibility Criteria for Increase in Authorized Capital of Company in India

If you’re planning to increase the authorized capital of a company, the only eligibility criteria that you have to adhere to is not to go beyond the limit that would change your private limited company into a public limited company.