Increase Paid-up Capital of Company

Paid-up share capital is the amount of authorized capital that has actually been subscribed and paid for by shareholders. Increasing paid-up capital is essential when the company needs to bring fresh equity for working capital, expansion, debt reduction or investor onboarding — but only up to the limit of authorized capital (which itself can be increased separately). Routes to increase paid-up capital include: (a) Right Issue under Section 62(1)(a) — offer to existing shareholders proportionate to holding; (b) Private Placement under Section 42 — offer to identified persons via Letter of Offer; (c) ESOP exercise — issuance to employees on stock-option exercise; (d) Bonus Issue — capitalization of free reserves; (e) Conversion — convert preference shares, debentures, or loans into equity. Each route has distinct procedural requirements — board approvals, shareholder resolutions, valuation reports, MCA filings (PAS-3, MGT-14, SH-7), stamp duty, and post-allotment compliance. We handle the entire workflow — strategy, documentation, filings and post-issue mutation.