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Increasing Capital

Increasing the capital of a company involves raising additional funds to support business growth, expansion, or working capital requirements. This can be achieved by issuing new shares or altering the company’s capital structure. Companies may decide to increase their capital through a rights issue, private placement, or public issue. The process involves passing a board resolution, obtaining shareholder approval, and filing an updated Memorandum of Association (MOA) to reflect the change in authorized capital. The company is also required to file the necessary forms with the Ministry of Corporate Affairs (MCA) and update its records. Increasing capital allows the company to raise funds without incurring debt, offering an opportunity for business expansion. However, the process must be carried out in compliance with the Companies Act, 2013, and the company’s Articles of Association (AOA).

 
     
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