Authorized Capital Increase
Authorized Capital Increase is the legal process of raising a company’s maximum share capital limit as stated in its Memorandum of Association (MOA).
A company must increase its authorized capital before issuing new shares to investors, promoters, or shareholders.
Authorized Capital Increase
✅ When is Authorized Capital Increase Required?
You need to increase authorized capital when:
Issuing new equity shares
Bringing in new investors / funding
Converting loans into equity
All existing authorized capital is fully utilized
Expanding ownership structure
🏢 Applicable For
✔ Private Limited Company
✔ Public Limited Company
✔ OPC
✔ Section 8 Company
📋 Documents Required
Board Resolution
Shareholders’ Ordinary Resolution
Altered MOA (Capital Clause)
Altered AOA (if required)
MCA Form SH-7
DSC of Director
🛠️ Authorized Capital Increase Process
1️⃣ Check AOA for authorization clause
2️⃣ Board Meeting approval
3️⃣ Shareholders’ approval (EGM/AGM)
4️⃣ Amend MOA & AOA
5️⃣ File SH-7 with ROC
6️⃣ ROC approval & updated capital reflected
⏱️ Timeline
🕒 3–7 working days after passing resolutions
💰 ROC Fees
ROC fees depend on existing & increased capital
Stamp duty varies state-wise
Government fees increase with higher capital slabs
⚠️ Important Points
AOA must allow capital increase (else AOA amendment needed)
Capital increase ≠ Share allotment
Separate filing required for share allotment (PAS-3)
Late filing may attract penalties
💼 How We Help You
✔ Capital structure planning
✔ Resolution drafting
✔ MOA & AOA amendment
✔ SH-7 preparation & filing
✔ End-to-end ROC coordination
Raise Capital Without Compliance Hassles
👉 Contact us today for fast & error-free Authorized Capital Increase filing.