Authorised Capital decides the amount of shares which can be issued by a Private Limited Company. In most cases, new company registration is done with 100,000 authorised capital as it is the most basic form of Private Limited Company Registration. But as soon as business grows and external investment is needed, Authorised Capital is also needed to be increased. Also, if a company registration wants to give ESOP to its employee, Authorized Capital needs to be increased.
To increase Authorised Capital the capital clause of the Memorandum of Association should also be amended by passing through general resolution and board resolution. At this juncture new shares maybe allotted to existing investors. Professional Fees for increase in Authorised Capital starts from Rs 1,499/- at MaxBusiness.