Increasing authorized share capital in a private limited company

Angelajbaker7122 Feb, 2024Business

The fund requirement of each business increases over the passage of time. These funds can be required on a long and short-term basis. A short-term need can be satisfied by taking loans and advances. But to run the business operations in long run, the company will require more funds. For a Private Limited Company, this can be done by increasing the authorized share capital of the company. Since the private limited company is governed and regulated by the Companies Act to make changes in the structure, it is necessary to follow the Act and the rules made thereunder.