Company Structure
Authorised Capital
Definition
The maximum amount of share capital your company is legally allowed to issue, as stated in your MOA. For example, ₹10,00,000 authorised capital at ₹10 face value = 1,00,000 authorised shares.
Why founders care
Set your authorised capital at 5–10× your initial paid-up capital. Increasing it later costs money and time. A common mistake is setting it too low, which requires an expensive amendment before you can issue shares to investors.
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