Increase or Decrease of Capital

Increase or Decrease of Capital refers to the legal process of altering a company's share capital, whether by increasing the authorised capital, increasing the paid-up capital, or reducing the capital structure in accordance with the Companies Act and the applicable MCA requirements. This is a significant corporate action because a company's capital structure reflects its funding capacity, ownership framework, and financial structure. A company may choose to increase capital for several reasons, such as business expansion, raising additional funds, bringing in new investors, supporting growth plans, or accommodating future share allotments. On the other hand, a company may reduce capital for reasons such as restructuring, excess capital adjustment, elimination of losses, or reorganization of its financial position.