How to Increase Paid-Up Capital in India

Description: Increasing paid-up capital helps businesses raise funds and support growth by issuing additional shares to investors. Companies can increase paid-up capital through methods like rights issue to existing shareholders, private placement to new investors, bonus shares from reserves, or conversion of debt into equity. Before increasing paid-up capital, businesses must ensure it does not exceed the authorized capital limit and may need to revise it if required. The process involves passing board and shareholder resolutions, filing necessary forms with the Registrar of Companies (ROC), and allotting shares within the prescribed timeline. This guide explains the complete procedure, benefits, and compliance requirements for smooth capital expansion.

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