Increase Paid up Share Capital

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As per Companies Act, ‘paid-up share capital’ or - ‘share capital paid-up’ means such aggregate amount of money credited as paid-up as is equivalent to the amount received as paid-up in respect of shares issued and also includes any amount credited as paid-up in respect of shares of the company, but does not include any other amount received in respect of such shares, by whatever name called. In other word paid up share capital of a company is the amount of money for which shares are issued to the shareholders and, in turn, the payment is made by the shareholders. The members of the company anytime during the tenure of the company may increase or decrease the capital of the company. The company can increase its paid-up capital by issuing shares either to an existing shareholder or to any other person.


However, there are some restrictions on the private limited company to issue shares i.e., it cannot issue share to general public whereas public limited can invite the general public to subscribe their shares, the private limited cannot issue shares to more than 200 people. A Company many increase paid-up capital by issuing securities through right issue and bonus issue and also through private placement. A Private Company can either issue shares to its existing shareholders by way of rights issue or by way of giving them bonus shares or it can issue securities through private placements. Get in touch with an Incorporate House for assistance with increasing paid up share capital

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