The maximum amount of share capital that a company can raise by selling shares to its shareholders is known as the authorized share capital. In the company's note of association, authorized share capital is mentioned. Up to this amount, the company can raise capital.
Yet, an organization could, all through its course of business activity, need additional capital for its development, meet working capital necessities, and so on. In order to supply new shares and inject a significant amount of capital into the business, an increase in authorized capital is required.
Due to various filing requirements and permissions from the Registrar of Companies (ROC), this method is challenging and time-consuming.