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Every business needs more funds to run a company. The funds can be required for long term as well as for short term. In case of short term funds the company can take loan and in case of long term funds the company will require more funds. So, for private limited company it is necessary to increase the authorized capital of the company.

Essential Requirements

The company can increase its Authorised share capital by fulfilling two ways:

  • After obtaining approval of members by ordinary resolution
  • If it is authorized by its article of association

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