Increase in Share Capital of limited company

The increase in share capital of a limited company is a strategic move that can provide significant benefits. This process involves raising additional funds by issuing new shares to existing or new shareholders. By doing so, the company can enhance its equity base, provide more financial stability, and support further growth initiatives. An increase in share capital can also improve the company's creditworthiness, making it easier to obtain loans or attract investors. However, this decision must be carefully considered, as it may lead to dilution of existing shareholders' equity if new shares are issued without proper allocation. Overall, increasing share capital can be a vital step in a company's expansion strategy, enabling it to pursue new opportunities and enhance its competitive position in the market.