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Alteration of Capital

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    Alteration of Capital

    Alteration of Capital can be done by way of increasing authorized and paid capital of a company. Authorized Capital is the maximum amount of capital which a Company can raise through the issue of shares to its shareholders. It is mentioned in the Memorandum of Association of the company. The company can raise capital up to this amount. Therefore to increase the authorized capital of company we always need the approval of shareholder in general meeting of the company.
    Paid up capital of the company is the amount of shares the company has already issues to its shareholders. But a company may, during its course of business operation, require additional capital for expansion, meet working capital requirements etc. Paid up capital of the company will always be less than authorized share capital of the company. An increase in capital is required for issuing new shares and inducting more capital into the company.
    Therefore, it is mandatory to comply the provision of Act in each and every aspect. So, Tax return wala can help the corporate in this regard and making their working more easy and smooth.