💰 Increase Paid-up Capital

Increase Paid Up Capital of Your Private Limited Company

Strengthen your balance sheet, improve creditworthiness, and prepare for future growth. Our experts make increasing paid-up capital simple and fully compliant with ROC requirements.

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CA/CS Assisted 100% Online Process ROC Compliant
The Basics

Understanding Paid-Up Capital

Paid-up Capital is the actual amount of funds the company has received from shareholders in exchange for its shares. It is a true measure of a company's financial investment from its owners and a key indicator of its net worth. Increasing paid-up capital involves allotting new shares and receiving funds from shareholders. This process must be reported to the ROC via Form PAS-3.

Key Requirements

Essential compliance requirements for increasing paid-up capital under Companies Act 2013.

  • Sufficient Authorized Capital: Must be available to accommodate the increase
  • Board Approval: Board of Directors resolution to allot new shares
  • Share Application Money: Receipt of funds from allottees in company bank account
  • Form PAS-3 Filing: Return of Allotment within 15 days of allotment for a private placement, 30 days for other allotments
  • Share Certificates: Issuance to shareholders within 2 months

Important Note

Paid-up capital can never exceed authorized capital. If needed, first increase authorized capital using Form SH-7.

Benefits Overview

Strategic advantages of increasing your company's paid-up capital for business growth and credibility.

  • Enhanced Credibility: Improved trust with banks, creditors, and business partners
  • Investor Attraction: Strong capital base signals financial stability
  • Tender Qualification: Meet minimum net worth requirements for contracts
  • Growth Funding: Provides capital for expansion and new projects

Business Impact

Companies with higher paid-up capital enjoy better banking relationships and access to larger business opportunities.

Our Process

Increase Your Capital in 4 Clear Steps

Streamlined process for compliant paid-up capital increase

Board Meeting

Convene Board Meeting to pass resolution for allotment of new shares to specific shareholders.

Receive Funds

Company must receive subscription money from allottees in its designated bank account.

File Form PAS-3

Prepare and file Form PAS-3 (Return of Allotment) with MCA within 15 days of allotment for a private placement, or 30 days for other allotments.

Issue Certificates

Assist in issuing new share certificates to allottees within 2 months from allotment date.

Advantages

Benefits of a Stronger Capital Base

Strategic advantages of increasing your company's paid-up capital

1

Boosts Credibility

Improves trust with banks, creditors, and suppliers for better financial terms and business relationships.

2

Attracts Investors

Strong capital base signals financial stability, making your company attractive for funding and partnerships.

3

Meets Tender Needs

Qualify for large government or corporate contracts that require minimum net worth criteria.

4

Fuels Expansion

Provides necessary funds to invest in new projects, technology, markets, and business growth initiatives.

Get Expert Assistance

Start the Process Today

Submit your details for expert assistance in increasing your company's paid-up capital. Our team will guide you through every step of the process.

Form PAS-3
Expert Filing

Quick Process
3-5 Days

ROC Compliant
100% Legal

Submit Your Details for a Free Consultation

Fill the form for expert consultation and complete capital increase support!

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FAQ

Frequently Asked Questions

Common questions about increasing paid-up capital

The mandatory form is PAS-3 (Return of Allotment). It must be filed with the ROC within 15 days of allotment for a private placement (section 42(9)), and within 30 days of allotment for other allotments.

Only if your proposed new paid-up capital exceeds your current authorized capital limit. The paid-up capital can never be more than the authorized capital. If needed, you must first increase authorized capital by filing Form SH-7.

Key attachments include a list of allottees (shareholders receiving new shares) and the Board Resolution for the allotment of shares. Additional documents may be required based on the nature of allotment.

Once the funds are received and the board meeting is held, the filing of Form PAS-3 and its approval by the ROC typically takes 3-5 working days. A rights issue or private placement takes longer, because of the offer period and shareholder approvals.

There is no minimum amount prescribed by law for increasing paid-up capital. However, the amount should be meaningful for your business needs and the shares must be issued at face value or premium (never at discount).

Yes, existing shareholders can subscribe to additional shares through a rights issue under section 62(1)(a), which needs an offer period. New shareholders come in through a private placement or preferential allotment under sections 42 and 62(1)(c). That route needs a special resolution, an offer letter in Form PAS-4 and a valuation report.