Increase in Paid-up Share Capital
Your trusted partner for capital infusion and share allotment — enabling business growth, investor onboarding, and full compliance under MCA regulations.
Overview
Paid-up Share Capital refers to the amount of money that a company has actually received from its shareholders in exchange for shares issued. An Increase in Paid-up Share Capital occurs when a company issues additional shares and receives payment against them.
This process is governed under the Companies Act, 2013 and involves strategic share allotment, regulatory filings (Form PAS-3), and issuance of share certificates. Importantly, paid-up capital can only be increased if sufficient 'Authorised Capital' is available. Compliance ensures that the fund infusion is legally recognized and the company's financial credibility is strengthened.
Key Benefits
Direct Fund Infusion
Enables the company to receive actual capital for operations, debt repayment, or market expansion.
Investor Participation
Facilitates the legal entry of new equity partners or venture capital through share issuance.
Financial Strength
Improves the company's net worth and creditworthiness, making it easier to secure bank loans.
Equity Recognition
Officially records the ownership stake of shareholders in the books of the Ministry of Corporate Affairs.
Growth Scalability
Provides the necessary capital base to scale business activities and reach new milestones.
Legal Protection
Ensures all share allotments are legally valid and protected under the Companies Act framework.
Eligibility Requirements
Ensure your business meets these basic criteria for a smooth registration process.
Expert Tip
Having all directors present in India is not mandatory, but at least one director must be a resident of India (stayed in India for 182+ days).
Documents Required
Keep these documents ready to fast-track your application.
Corporate Documents
- Certificate of Incorporation
- Memorandum & Articles of Association
- List of Existing Shareholders
Required Resolutions
- Board Resolution for Allotment
- Letter of Offer (PAS-4, if applicable)
- Shareholder Resolution (if required)
Allotment Details
- List of Allottees with PAN/Aadhaar
- Bank Statement (Proof of Fund Receipt)
- Valuation Report (in certain cases)
Registration Process
Our seamless digital-first approach ensures completion in the fastest possible time.
Capital Check & Planning
Ensuring sufficient authorised capital and planning the share price/premium.
Board Meeting & Approval
Approving the proposal for share issuance and authorizing the allotment process.
Offer & Acceptance
Issuing the formal offer letter to the proposed investors and receiving their consent.
Receipt of Investment
Collection of share application money into a separate bank account.
Board Meeting for Allotment
Formally allotting shares to the investors within 60 days of fund receipt.
Filing Form PAS-3
Submitting the Return of Allotment to the ROC within 15 days of allotment.
Share Certificate Issuance
Printing and delivering stamped share certificates to the new owners.
Statutory Register Update
Updating the Register of Members (MGT-1) to reflect new shareholding.
Mandatory Compliance
Staying compliant is crucial for your company's good standing. Non-compliance may lead to penalties and director disqualification.
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FAQs
Common questions about Increase in Paid-up Share Capital
Ready to Infuse Capital into Your Business?
Manage your share allotment and paid-up capital increase seamlessly with expert support from Bizmint LLP.