Statutory Meaning & Definition
The maximum amount of share capital that a company is authorised to issue as stated in its Memorandum of Association. Also called nominal or registered capital. Can be increased by ordinary resolution and ROC filing.
Frequently Asked Questions (FAQs)
What is Authorised Capital in Indian corporate law?
The maximum amount of share capital that a company is authorised to issue as stated in its Memorandum of Association. Also called nominal or registered capital. Can be increased by ordinary resolution and ROC filing.
Why is Authorised Capital important for compliance?
Authorised Capital is governed by the Ministry of Corporate Affairs under the Companies Act, 2013. Understanding this concept is essential for ensuring regulatory compliance, avoiding penalties, and making informed corporate decisions in India.
Who should know about Authorised Capital?
Authorised Capital is relevant for company secretaries, compliance officers, chartered accountants, corporate lawyers, board members, and all professionals dealing with MCA regulatory matters in India.
Contextual Analysis & Regulatory Circulars
Recent analysis and regulatory updates related to MCA:
MCA Overseas Listing Amendment Rules 2026 (G.S.R. 968(E)): Equity Instruments, IFSC Companies and the 75% QIB Route
Published: 5 November 2026
INC-20A Declaration for Commencement of Business: 180-Day Due Date, Fees, Penalty & MCA V3 Filing Guide
Published: 4 November 2026
MSME Form I Half-Yearly Return: Due Dates, Applicability, Section 405(4) Penalty & MCA V3 Filing Steps
Published: 2 November 2026
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