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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.