Increase Paid-Up Capital
Increase in Paid-Up Capital
Paid-up capital represents the actual amount invested into the company by its shareholders. When a business brings in new funds, adds investors, allots shares or converts loans into equity, the paid-up capital goes up. Since this affects ownership, voting power and financial structure, the process needs precise documentation, valuation where required and timely MCA filings to stay compliant.
What We Assist With
• Assessing the right method of increasing paid-up capital
• Drafting Board and shareholder resolutions
• Preparing share allotment, offer letters and agreements
• Filing Form PAS-3 and related MCA documents
• Coordinating valuation reports (if required)
• Updating the register of members and share certificates
• Post-allotment guidance for investor onboarding and ROC compliance
Why Companies Increase Paid-Up Capital
• Raising equity from new or existing shareholders
• Bringing in seed, angel, VC or strategic investors
• Converting loans, CCDs or other instruments into equity
• Strengthening the balance sheet
• Meeting regulatory or tender requirements for minimum capital
Frequently Asked Questions
Authorised capital is the maximum limit the company can issue. Paid-up capital is what shareholders have actually invested.
Yes, if the existing authorised capital isn’t enough. Paid-up capital can’t exceed authorised capital.
Yes. Allotments require Board approval, and in certain cases shareholder approval depending on the method of issue.
Form PAS-3 for return of allotment, along with share certificates and supporting documents.
Yes, for issuance to non-resident investors or for preferential allotment, valuation by a registered valuer is mandatory.