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Increasing the paid-up capital of a company involves raising the actual amount of capital that shareholders have invested in the company. This can be done for various reasons, such as funding expansion, improving financial stability, or meeting regulatory requirements. Here are some important points to know about increasing paid-up capital:

Shareholder Approval: Increasing paid-up capital usually requires approval from the company's shareholders. This approval is typically obtained through a special resolution passed during a general meeting.

Board Resolution: Before seeking shareholder approval, the board of directors may need to pass a resolution recommending the increase in paid-up capital.

Issued vs. Authorized Capital: It's essential to distinguish between authorized capital (the maximum limit defined in the company's documents) and issued capital (the actual shares that have been issued to shareholders). Increasing paid-up capital involves issuing new shares or increasing the nominal value of existing shares.

Filing with Regulatory Authorities: Depending on the jurisdiction, the company may need to file documents related to the increase in paid-up capital with the relevant regulatory authority, such as the Registrar of Companies (RoC) in India.

Share Allotment: If new shares are issued as part of the capital increase, the process of allotting these shares to shareholders should be conducted according to legal and regulatory requirements.

Updated Documents: The company's Memorandum of Association (MOA) and Articles of Association (AOA) may need to be amended to reflect the changes in paid-up capital. These amendments should be filed with the regulatory authorities.

Payment of Fees: There may be filing fees associated with the increase in paid-up capital, and these fees should be paid to the regulatory authority.

​​Certificate of Incorporation: Once the regulatory authority approves the changes, they may issue an updated Certificate of Incorporation reflecting the increased paid-up capital.

​​Communication with Shareholders: Shareholders should be informed of the increase in paid-up capital, and records should be updated to reflect their new shareholdings.

Purpose: Companies typically increase paid-up capital to raise funds for specific purposes, such as investments, acquisitions, debt reduction, or working capital needs.