What are the compliance requirements after a company is registered?

After registering a company in India, compliance requirements include: Appointment of a Statutory Auditor within 30 days, Filing of Annual Returns (Form MGT-7), Filing Financial Statements (Form AOC-4), Conducting at least four Board Meetings annually, Income Tax Filing (ITR-6), Maintenance of Books of Accounts, and GST Filing if applicable.

Can a foreign national or NRI be a director in an Indian company?

Yes, foreign nationals and NRIs can be directors of an Indian company if: The company has at least one resident director who has lived in India for at least 182 days in the previous calendar year, they obtain a Director Identification Number (DIN) and a Digital Signature Certificate (DSC), and they provide required documents including a passport, proof of address, and a consent declaration.

How can I conduct a company name search online?

To conduct a company name search: Visit the MCA Name Availability Tool on the MCA website, enter your proposed company name in the search bar, review similar names displayed, and ensure compliance with Companies Act 2013 naming guidelines. You can also check the trademark database to ensure the name is not trademarked by another entity.

How much does it cost to register a company in India?

The cost depends on the type of company. Government Fees include Name Reservation (₹1,000) and SPICe+ Form Filing (₹2,000 for authorized capital up to ₹10 lakh). Professional Fees range from ₹5,000-₹20,000. Additional Costs include Digital Signature Certificate (DSC) at ₹500-₹2,000 per director. PAN and TAN are included in SPICe+ filing.

How do I open a current bank account for my company?

To open a current bank account, submit the Certificate of Incorporation, PAN, Memorandum and Articles of Association, Board Resolution authorizing account opening, and KYC documents of directors to the chosen bank.

Does a private limited company have perpetual existence?

Yes, a private limited company has perpetual existence, meaning it continues to exist regardless of changes in ownership or the death of its members.

What are articles of association and memorandum of association?

The Memorandum of Association (MOA) defines a company's objectives, scope, and relationship with external parties. The Articles of Association (AOA) outline the rules and regulations for the company's internal management and governance.

What are the penalties for non-compliance with annual filings?

Penalties include a late filing fee of ₹100 per day per form, disqualification of directors for up to 5 years, fines ranging from ₹50,000 to ₹5,00,000, and in severe cases the company may be struck off the MCA register.

What are the corporate tax rates for companies in India?

Domestic companies are taxed at 30%, or 25% if turnover is up to ₹400 crore, with a concessional rate of 22% (25.17% effective) for companies not claiming exemptions and 15% (17.16% effective) for new manufacturing companies. Foreign companies are taxed at 40%.

Is GST registration mandatory during company registration?

GST registration is not mandatory during company registration. However, it is required if the company's turnover exceeds ₹40 lakh for goods or ₹20 lakh for services. It is also mandatory for companies involved in inter-state supply or e-commerce activities.

What is the minimum and maximum number of shareholders allowed?

A private limited company requires a minimum of 2 shareholders and allows a maximum of 200. A public limited company requires a minimum of 7 shareholders, with no limit on the maximum number.

Can I register a company using a virtual office address?

Yes, you can register a company using a virtual office address, provided it is a legally valid address and you have the necessary documentation, such as a rental agreement and utility bills, to verify its authenticity.

How many days does it take to register a company?

Company registration in India usually takes about 7-10 working days if all documents are in order. Using the SPICe+ form can speed up the process since it combines multiple services like PAN, TAN, and GST registration.

Who governs and controls private limited companies in India?

Private limited companies in India are governed by the Companies Act, 2013, regulated by the Ministry of Corporate Affairs (MCA), with day-to-day operations managed by the Board of Directors. Shareholders have the power to appoint or remove directors through voting.

What documents are required for company registration in India?

Required documents include PAN cards for directors and shareholders, passport for foreign nationals, Aadhaar or Voter ID for identity proof, bank statements or utility bills for address proof, MOA and AOA, and proof of office address and rent agreement.

What are the benefits of registering a private limited company?

Benefits include limited liability, separate legal entity, ease in fundraising, tax advantages, and a more professional image with clients and partners. It is ideal for startups and SMEs.

What is the process for registering a company in India?

The process includes: 1) Obtain Digital Signature Certificate (DSC) for proposed directors, 2) Obtain Director Identification Number (DIN), 3) Reserve company name through MCA portal, 4) Prepare and file SPICe+ form with required documents, 5) Pay government fees, and 6) Receive Certificate of Incorporation upon approval.

Can I convert my sole proprietorship or partnership into a private limited company?

Yes, you can convert a sole proprietorship or partnership into a private limited company by following the conversion process outlined by the MCA, which includes obtaining DIN for directors, reserving a new company name, and filing the necessary forms along with the required documents.

What are the ongoing compliance requirements after company registration?

Ongoing compliance includes: 1) Annual General Meeting (AGM) within 6 months of financial year-end, 2) Filing of Annual Returns (Form MGT-7) and Financial Statements (Form AOC-4), 3) Income Tax Return filing (ITR-6), 4) GST returns if applicable, 5) Maintaining statutory registers and records, and 6) Complying with labor laws and other applicable regulations.

How can I check the status of my company registration application?

You can check the status of your company registration application by visiting the MCA website, navigating to the 'MCA Services' section, and using the 'Track Application Status' feature by entering your application number or CIN.

What are the common reasons for company registration rejection?

Common reasons for rejection include: 1) Name similarity with existing companies, 2) Incomplete or incorrect documentation, 3) Non-compliance with naming guidelines, 4) Invalid DSC or DIN, and 5) Issues with the proposed registered office address.

Can I register a company without a physical office address?

No, a physical office address is required for company registration in India. However, you can use a virtual office address as long as it is a legally valid address and you have the necessary documentation to verify it.

What is the difference between a private limited company and a public limited company?

A private limited company has restrictions on share transfers and a maximum of 200 shareholders, while a public limited company can offer shares to the public and has no limit on shareholders. Public companies are also subject to more stringent regulatory requirements.

How do I choose a unique name for my company?

To choose a unique name, ensure it is not identical or similar to existing companies by using the MCA Name Availability Tool. Follow naming guidelines such as avoiding offensive words, ensuring it ends with 'Private Limited' for private companies, and considering trademark availability.

What are the tax implications of registering a company in India?

Tax implications include corporate tax rates (30% or concessional rates), Goods and Services Tax (GST) if applicable, Dividend Distribution Tax (DDT) on dividends paid to shareholders, and compliance with transfer pricing regulations for international transactions.

Can I register a one-person company (OPC) instead of a private limited company?

Yes, you can register an OPC if you are an individual entrepreneur who wants to start a business without partners. An OPC allows for single ownership while providing limited liability protection.

What is the role of directors in a private limited company?

Directors are responsible for managing the company's affairs, making strategic decisions, ensuring compliance with legal requirements, and acting in the best interest of the company and its shareholders.

How do I file annual returns and financial statements after registering my company?

Annual returns and financial statements can be filed through the MCA portal using Form MGT-7 for annual returns and Form AOC-4 for financial statements. Ensure you have all necessary information and documents ready before filing.

What are the advantages of registering a company in India?

Advantages include limited liability protection, separate legal entity status, easier access to funding and investment, tax benefits, enhanced credibility with customers and partners, and perpetual succession.

How can I get a Digital Signature Certificate (DSC) for company registration?

You can obtain a DSC from government-approved certifying authorities in India. The process typically involves submitting an application form along with identity and address proof documents, and paying the required fee.

What is the significance of a Director Identification Number (DIN) in company registration?

A DIN is a unique identification number assigned to individuals who wish to become directors of a company. It is mandatory for all directors and is used to track their involvement in various companies.

Can I register a company in India if I am a foreign national?

Yes, foreign nationals can register a company in India as long as they meet the requirements, such as having at least one resident director and obtaining the necessary documentation like DIN and DSC.

What are the steps involved in registering a private limited company?

Steps include: 1) Obtain DSC for proposed directors, 2) Obtain DIN, 3) Reserve company name, 4) Prepare MOA and AOA, 5) File SPICe+ form with required documents, 6) Pay government fees, and 7) Receive Certificate of Incorporation.

How do I ensure compliance with the Companies Act after registering my company?

Ensure compliance by conducting regular board meetings, maintaining statutory registers, filing annual returns and financial statements on time, adhering to tax regulations, and keeping up-to-date with any changes in laws that may affect your business.

What are the common challenges faced during company registration?

Common challenges include name approval issues, document verification delays, technical glitches on the MCA portal, understanding complex legal requirements, and ensuring all compliance criteria are met.

Can I register a company online without visiting any government office?

Yes, you can register a company online through the MCA portal using the SPICe+ form which allows for digital submission of all required documents and payment of fees without needing to visit any government office.

What is the importance of a registered office address for company registration?

A registered office address is important because it is the official address of the company where all communications and notices from the government and other entities are sent. It must be a physical address in India and cannot be a P.O. Box.

What are the benefits of using a virtual office address for company registration?

Using a virtual office address can provide benefits such as cost savings on physical office space, flexibility in location, and access to professional services like mail handling and call forwarding. However, it is important to ensure that the virtual office address is legally valid and meets the requirements for company registration.

What is the process for reserving a company name?

To reserve a company name, you need to use the MCA Name Availability Tool on the MCA website. Enter your proposed company name and check for availability. If the name is available and complies with naming guidelines, you can proceed to reserve it by filing the necessary form and paying the required fee.

How do I prepare the Memorandum of Association (MOA) and Articles of Association (AOA)?

The MOA should include the company's name, registered office address, objectives, liability of members, share capital details, and subscriber information. The AOA should outline the rules for internal management, including share transfer procedures, meeting protocols, and director responsibilities. You can use templates or seek professional help to ensure they meet legal requirements.

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Overview Key Features Why Increase Documents Required Process Stamp Duty FAQs

INCREASE IN AUTHORIZED CAPITAL - AN OVERVIEW

Authorized Capital (also called Nominal Capital or Registered Capital) is the maximum amount of share capital that a company is authorized to issue to its shareholders as stated in the Memorandum of Association (MoA). When a company needs to issue more shares than its current authorized capital allows, it must first increase the authorized capital by amending the MoA.

The increase in authorized capital is governed by Section 61 and 64 of the Companies Act, 2013. The process requires passing a Special Resolution (or Ordinary Resolution if authorized by AoA) in a General Meeting, paying applicable stamp duty, and filing Form SH-7 with the Registrar of Companies (ROC) within 30 days of the resolution.

Increasing authorized capital is a common corporate event for growing companies. It is typically done when the company needs to raise additional funds through share issuance, bring in new investors, implement Employee Stock Option Plans (ESOPs), or issue bonus shares. The process involves both a General Meeting and MCA filing.

At IncorpX, we handle the complete authorized capital increase process - from drafting resolutions and conducting EGM to calculating stamp duty and filing Form SH-7. Our expert team ensures accurate filing and compliance with all statutory requirements.

Understanding Authorized vs Paid-up Capital:

Before increasing capital, it's important to understand the difference between Authorized Capital and Paid-up Capital:

Aspect	Authorized Capital	Paid-up Capital
Definition	Maximum capital the company can issue	Actual capital received from shareholders
Mentioned In	Memorandum of Association (MoA)	Company's financials and MCA records
Can Be Issued	Up to the authorized limit	Cannot exceed authorized capital
Filing Required	SH-7 for increase	PAS-3 for share allotment
Stamp Duty	Applicable on increase	Not separately applicable
Example	Company authorized for ₹50 lakhs	Company has issued shares worth ₹25 lakhs

Key Point

A company can only issue shares up to its authorized capital limit. If the company wants to raise more capital by issuing new shares and the paid-up capital has reached the authorized limit, it must first increase the authorized capital.

Key Features of Authorized Capital Increase in Mysore:

Understanding the essential aspects of authorized capital increase helps ensure smooth compliance:

1. Shareholder Approval Required

Increase requires a Special Resolution passed by shareholders in a General Meeting (EGM or AGM). Ordinary Resolution is sufficient if authorized by AoA.

2. MoA Amendment

The capital clause in the Memorandum of Association must be amended to reflect the new authorized capital amount.

3. Stamp Duty Payable

Stamp duty on the increase amount must be paid as per state-specific rates. This is in addition to government filing fees.

4. 30-Day Filing Deadline

Form SH-7 must be filed with MCA within 30 days of passing the resolution. Late filing attracts penalties.

5. Fee Based on Capital

Government filing fees vary based on the existing and proposed authorized capital. Higher capital means higher fees.

6. Immediate Effect

Once approved by ROC, the increased authorized capital reflects in MCA records and the company can issue new shares.

Reasons to Increase Authorized Capital in Mysore:

Companies increase their authorized capital for various strategic and operational reasons:

Raise Fresh Capital

To issue new shares to existing shareholders (rights issue) or new investors when paid-up capital has reached the authorized limit.

Bring New Investors

When venture capital, angel investors, or strategic partners want to invest, additional shares need to be issued.

Issue Bonus Shares

To capitalize reserves and issue bonus shares to existing shareholders without receiving additional consideration.

Implement ESOPs

Employee Stock Option Plans require shares to be issued to employees. Additional authorized capital may be needed.

Mergers & Acquisitions

During acquisitions or amalgamations, the company may need to issue shares to the shareholders of the acquired entity.

Convert Debt to Equity

When lenders or debenture holders convert their loans into equity shares, additional capital authorization may be required.

Documents Required for Authorized Capital Increase in Mysore:

The following documents and information are required to process the authorized capital increase:

Copy of existing Memorandum of Association (MoA)

Copy of existing Articles of Association (AoA)

Board Resolution for calling EGM

Notice of EGM with explanatory statement

Attendance sheet and minutes of EGM

Special Resolution passed by shareholders

Amended MoA with new capital clause

Stamp duty payment challan (state-specific)

DSC of one director and CS (if applicable)

Company's CIN and other registration details

Step-by-Step Process for Authorized Capital Increase in Mysore:

Our streamlined process ensures smooth and compliant authorized capital increase:

Step 1: Board Meeting

The Board of Directors convenes a meeting to approve the proposal for increasing authorized capital and to authorize calling an Extraordinary General Meeting (EGM).

Step 2: Issue EGM Notice

A notice is sent to all shareholders at least 21 clear days before the EGM. The notice includes the proposed resolution and explanatory statement.

Step 3: Conduct EGM

The EGM is held where shareholders vote on the Special Resolution. The resolution must be passed by at least 75% of voting shareholders.

Step 4: Calculate & Pay Stamp Duty

Stamp duty is calculated based on the increase amount and state-specific rates. The duty must be paid through the official stamp duty portal.

Step 5: Prepare Amended MoA

The capital clause in the Memorandum of Association is amended to reflect the new authorized capital amount.

Step 6: File Form SH-7

Form SH-7 is prepared with all required attachments (resolution, amended MoA, stamp duty proof) and filed on MCA portal within 30 days.

Step 7: Approval & Confirmation

Upon ROC approval, the company's master data is updated with the new authorized capital. The company can now issue shares up to the new limit.

Increase your authorized capital with proper MCA compliance!

Stamp Duty for Authorized Capital Increase in Mysore:

Stamp duty rates vary by state and are applicable on the amount of capital increase. Here are indicative rates for some major states:

State	Stamp Duty Rate	Maximum Cap
Maharashtra	0.15% of increase amount	₹50,00,000
Delhi	0.15% of increase amount	₹25,00,000
Karnataka	0.10% of increase amount	₹30,00,000
Tamil Nadu	0.15% of increase amount	₹25,00,000
Gujarat	0.15% of increase amount	₹25,00,000
West Bengal	0.15% of increase amount	₹25,00,000
Uttar Pradesh	0.10% of increase amount	₹25,00,000
Rajasthan	0.10% of increase amount	₹25,00,000
Madhya Pradesh	0.10% of increase amount	₹25,00,000
Punjab	0.10% of increase amount	₹25,00,000
Haryana	0.10% of increase amount	₹25,00,000
Contact us for other states	Varies	Varies

Example Calculation

If a company in Maharashtra increases authorized capital from ₹10 lakhs to ₹1 crore, the increase is ₹90 lakhs. Stamp duty @ 0.15% = ₹13,500. This is in addition to MCA filing fees which depend on the existing authorized capital.

Penalties for Late SH-7 Filing in Mysore:

Timely filing is crucial to avoid penalties:

Delay Period	Additional Fee	Consequence
Within 30 days	Nil	Normal government fee applies (based on capital)
31-60 days	₹100 per day	Additional fee accumulates
Beyond 60 days	₹100 per day (max 10x normal fee)	Substantial penalties; possible ROC queries

Why Choose IncorpX for Authorized Capital Increase in Mysore?

Expert Team: Qualified CS/CA professionals with extensive MCA filing experience.

Stamp Duty Calculation: Accurate calculation based on state-specific rates.

Transparent Pricing: Clear fees with no hidden charges.

Complete Documentation: We draft all resolutions, notices, and amended MoA.

Dedicated Support: Personal manager to guide you through the process.

Zero Rejection: Quality review ensures accurate, rejection-free filings.

FAQs on Authorized Capital Increase

Increasing authorized capital is a common corporate event. Here are answers to frequently asked questions about authorized capital increase:

Authorized capital is the maximum amount of shares a company can issue as specified in its MoA. Paid-up capital is the actual amount received from shareholders against issued shares. Paid-up capital cannot exceed authorized capital.

No, there is no minimum authorized capital requirement under the Companies Act, 2013. A company can be registered with any amount of authorized capital. However, practically, ₹1 lakh is commonly taken as minimum.

Yes, a company can increase authorized capital without actually issuing shares. The increase creates headroom for future share issuances. Actual share issuance is a separate process (PAS-3 filing).

Form SH-7 is filed with MCA to report notice of alteration of share capital including increase/decrease in authorized capital, consolidation/split of shares, and conversion of shares.

Under Section 61, an Ordinary Resolution is sufficient if the company's Articles of Association (AoA) authorize it. However, most companies' AoA require a Special Resolution for authorized capital increase.

Yes, a company can increase authorized capital as many times as needed. Each increase requires a separate resolution, stamp duty payment, and SH-7 filing.

Form SH-7 must be filed within 30 days of passing the resolution for authorized capital increase. Late filing attracts additional fees of ₹100 per day of delay.

Yes, stamp duty is applicable on the increase in authorized capital. The rate varies by state (typically 0.10%-0.15%). It must be paid before filing SH-7.

Yes, authorized capital can be reduced. However, it's a more complex process requiring Tribunal approval under Section 66 of the Companies Act, 2013.

The complete process typically takes 15-20 working days including EGM notice period (21 days can be reduced with shareholder consent), meeting, stamp duty payment, and MCA filing.

If SH-7 is not filed, the capital increase is not effective in MCA records. The company cannot issue shares beyond the existing authorized capital, and it will attract late filing penalties.

Yes, the capital clause in MoA must be amended to reflect the new authorized capital. The amended MoA is attached to Form SH-7 and filed with MCA.

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Verified

(5 out of 5)

Highly recommend... IncorpX services regarding incorporation of our company and roc filing and all are very impressive.. the team IncorpX is polite and friendly. Our Lands Time pvt ltd has incorporated through IncorpX... And thanks to IncorpX team..

2025-10-25

Ramesh Babu

Verified

(4.9 out of 5)

Trouble free service, Rendering good co-operation for company incorporation. Trust worthy team to have better knowledge.

2025-09-21

Pravesh Kudesia

Verified

(5 out of 5)

IncorpX is providing best service... And user experience! Thank You IncorpX Team

2025-10-30

Balaji Gutte

Verified

(4.9 out of 5)

I recently got my Private Limited Company incorporated through IncorpX, and the experience was seamless! The team was professional, supportive, and quick to respond throughout the process. Highly recommend IncorpX for a smooth and stress-free company registration experience.

2025-11-02

Dia

Verified

(5 out of 5)

I'd been planning to register my Private Limited Company for months but didn't know where to start - until I found IncorpX. The team guided me step by step, explained everything clearly, and completed the registration smoothly within the promised timeline. Their pricing was transparent with no hidden charges. Highly recommend IncorpX to anyone starting a business!

2025-10-07

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Increase Authorized Capital of Company in Mysore

Increase Your Company's Authorized Capital with Expert Support - Starting @ ₹4,999 Only

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Need to Increase Your Company's Authorized Capital in Mysore Today?

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1. Fill the Form

2. Call to discuss

3. Increase Authorized Capital

SIMPLE & TRANSPARENT PRICING

Authorized Capital Increase Package in Mysore

IncorpX Prime

Key Benefits

Important Notes

INCREASE IN AUTHORIZED CAPITAL - AN OVERVIEW

Understanding Authorized vs Paid-up Capital:

Key Point

Key Features of Authorized Capital Increase in Mysore:

Reasons to Increase Authorized Capital in Mysore:

Raise Fresh Capital

Bring New Investors

Issue Bonus Shares

Implement ESOPs

Mergers & Acquisitions

Convert Debt to Equity

Documents Required for Authorized Capital Increase in Mysore:

Step-by-Step Process for Authorized Capital Increase in Mysore:

Step 1: Board Meeting

Step 2: Issue EGM Notice

Step 3: Conduct EGM

Step 4: Calculate & Pay Stamp Duty

Step 5: Prepare Amended MoA

Step 6: File Form SH-7

Step 7: Approval & Confirmation

Stamp Duty for Authorized Capital Increase in Mysore:

Example Calculation

Penalties for Late SH-7 Filing in Mysore:

Why Choose IncorpX for Authorized Capital Increase in Mysore?

FAQs on Authorized Capital Increase

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