A Private Limited Company needs to grow with its Authorised capital before issuing new esteem shares and extending paid-up capital. Authorised capital is the aggregate estimation of offers an association can issue, while paid-up capital is the aggregate estimation of offers the association has given. Paid-up capital can never outperform Approved capital. From this time forward, if an association having an endorsed capital or Approved capital of Rs.10 lakhs and paid-up capital of Rs.10 lakhs should enroll new financial specialists, it can do all things considered either by:
Extending Authorised Share capital and issuing new offers. (or)
Exchanging shares from existing financial specialists to the new speculators.
Procedure for Increase in Paid up share capital of the private limited company
Step 1 – First, assemble executive Meeting or Board Meeting for distribution of value offers and pass important determination for apportioning.
Step 2 – Download Form 3 from MCA Site www.mca.gov.in
Step 3 – Fill Form 3 and attach rundown of allottee or List of Allottee
Step 4 – Get Form 3 ensured or Certified from honing CS/CA and transfer or Upload the same on MCA Site.