increase in authorized share capital by a small company as defined u/s 2(85)
Kushal
(Querist) 23 May 2015
This query is : Resolved
My company is a private limited company. Since the share capital is Rs. 15,00,000 which is less than Rs. 50 lakhs and the profit for the last year is less than Rs. 2 crore, it fits within the definition of Small Company u/s 2(85) of the Companies Act, 2013. Now, I want to raise the authorized share capital to Rs. 1 crore. As per the Fees Table, a Small Company is liable to pay Rs. 2,000 upto share capital of Rs. 10 lakhs and Rs. 200 per Rs. 10,000 after the first Rs. 10 lakhs and upto Rs. 50 lakhs. However, since the revised authorized share capital would be Rs. 1 crore which exceeds the limit of Rs. 50 lakhs, I am confused if the company would be considered as a small company for this particular transaction or not. Accordingly, the RoC fees would vary. This is because a normal company has a different fees schedule and charged heavily, whereas a small company has exemptions due to which the fees charged is negligible. Hence, I want to know that what will be the RoC fees payable on e-filing of Form SH-7?
Dr J C Vashista
(Expert) 23 May 2015
Contact, consult and engage a local lawyer, such queries shall be continues affair and the lawyer employed by the company shall be beneficial and on-the-spot advisor available to you, which the company can very well afford to employ an advocate.
malipeddi jaggarao
(Expert) 23 May 2015
Once you increase the share capital to Rs.100 lakh (beyond the qualifying limit of Rs.50 lakhs), the company will be out of the purview of "Small Company" as defined in the 2(85) of the Act and as such the concessions which are available to the Small Company will not be available to your company. You can have both the things at one time, the advantage of increasing the share capital and availing the concessions for Small Company. You can think of keeping the Share Capital within the upper limit for some more time. It is a business decision.
Kushal
(Querist) 23 May 2015
My question is that what will be the ROC fees in light of the above facts? I want to increase the authorized capital to Rs 1 crore
Guest
(Expert) 23 May 2015
See the website of Ministry of Corporate Affairs.
Biswanath Roy
(Expert) 23 May 2015
When the question relates to a company affair and the company can easily pay legal opinion fees from the account head"Legal Expenses"why the author soliciting opinion from free legal aid platform I cannot understand. Better consult with your C.A.
T. Kalaiselvan, Advocate
(Expert) 26 May 2015
I go with the opinion of senior learned counsel respected Roy Sir n the subject issue, you may consult an auditor for more and proper guidance.
Rajendra K Goyal
(Expert) 02 June 2015
Agree with the advise of expert Biswanath Roy ji.
Kushal
(Querist) 02 June 2015
Dear Learned Experts, I got the solution to my query. The instruction kit of Form SH-7 clarifies the issue. Further, I would appreciate if the experts stick to the query and give accurate solutions based on their knowledge and experience rather than giving irrelevant suggestions like consulting external experts and paying them legal charges.
Guest
(Expert) 02 June 2015
Dear Shri Kushal,
As a director of some profit earning company, do you think your attempt to seek charity advice is relevant, if you think experts are giving you "irrelevant suggestions like consulting external experts and paying them legal charges?"
Moreover, when you have have stated, "I got the solution to my query. The instruction kit of Form SH-7 clarifies the issue," what doubt you want to get clarified that too free of cost, when your company is supposed to get solution from your own company's CA, Auditor, Managers, or even can well afford fee of some consultant to get solution to your problems.
DESPITE ALL THIS, WOULD YOU PLEASE LIKE TO GIVE JUSTIFICATION OF YOUR LATEST STATEMENT AND WHY YOU DESERVE FREE ADVICE?
Kushal
(Querist) 02 June 2015
I got the solution just now. So thought of sharing it with my fellow professional colleagues which could be helpful to them as well. Further, regarding charity advice, I believe that this website no where states that it is doing charity. It is made for the convenience of professional colleagues to share and exchange views and resolve each other's query if someone has dealt with it in the real life situation while dealing with some client. Sir, I think my previous comment was a little harsh but my only humble request is that we must try and address is the main issues irrespective of any other irrelevant things.
Biswanath Roy
(Expert) 02 June 2015
Sorry, Businessmen cannot be called as our professional friend. You may consult with the Directors of other companies who are your business friends. I think expert lawyers of this platform will agree with me our reluctance to share our valuable views with the profit earner businessmen free of costs and professional charges.
Kushal
(Querist) 02 June 2015
Sirji you have again got me wrong. It was a hypothetical question. I am not the owner of the company. I am myself a qualified professional. I think the experts on this panel are misunderstanding me. I hope everything is sorted now without any hard feelings.
Biswanath Roy
(Expert) 03 June 2015
Being an old featured expert member of this platform I know that my fellow expert lawyers are not interested to deal with any hypothetical queries rather they are interested in dealing with the problematic queries of legal litigations. I cannot understand why you are appearing before us under the veil of a "Director" as registered in LCI. Even now you are desribing yourself as a qualified professional suppressing the word "Legal" .
Why this ambiguity? Why this hide and sick?
Besides, by your said act you committed wrong personation which bears some serious legal liability.
Guest
(Expert) 03 June 2015
Mr. Kushal,
Shri Biswanth Roy's observation is quite correct. In your profile you have declared yourself as a director and now you claim to be a qualified professional. By the way, you represent as a qualified professional in which profession?
Further, you have admitted, "I am not the owner of the company," which clearly reveals that you have made a false profile of yours. Further, you have also admitted that "it was a hypothetical question," which clearly reveals that you have raised an irrelevant issue without any problem, while you have alleged othe experts to be "giving irrelevant suggestions like consulting external experts and paying them legal charges."
You have further stated, "I got the solution just now. So thought of sharing it with my fellow professional colleagues which could be helpful to them as well." But you have still not shared that solution for the information of all others, who rendered free advice to you.
The question arises, when you admit that your question was hypothetical question, for what specific purpose you expected the members to start tutorials for you?
In fact, you have neither been revealing your real identity, nor stating the purpose of asking your question, when it does not belong to any real problem. Moreover, if there was any hard feeling, only your misrepresentation was behind that. So, where arose any issue of sorting out any hard feeling, when none of the experts compelled you to settle the misunderstanding, when you had not been presenting the facts behind the issue and the falseness of your profile.
The fact is that only you are the sole cause of misunderstanding, if any, as you have all along been misrepresenting yourself as well as the vahue issue without any reason or rhyme, adding further fuel to the fire by terming advice of all the experts, as "giving IRRELEVANT suggestions like consulting external experts and paying them legal charges," when only you had been stretching the irrelevant issue without giving any background of the case and your real identity also.
malipeddi jaggarao
(Expert) 07 June 2015
You started the query "my company". We took it as a practical problem. Here we do not give advice for hypothetical questions. Your remarks on expert Mr.Biswanath Roy is unwarranted.
