Increase your company's authorised share capital
Raise your company's authorised capital so you can issue more shares.
- Startups preparing for a funding round
- Companies planning a rights issue or bonus issue
- Businesses setting up an ESOP pool
- Companies whose paid-up capital has reached the authorised limit
Overview
What is Increase in Authorised Capital?
Authorised capital is the maximum share capital a company can issue, as stated in its Memorandum of Association. When you want to bring in investors, issue new shares or grant ESOPs beyond this limit, the authorised capital must be increased first.
Under Section 61 of the Companies Act, 2013, the increase is approved by shareholders and reported to the ROC in Form SH-7 within 30 days, along with the altered MOA. Stamp duty and ROC fees depend on the amount of increase and your state.
Who is this for?
- Startups preparing for a funding round
- Companies planning a rights issue or bonus issue
- Businesses setting up an ESOP pool
- Companies whose paid-up capital has reached the authorised limit
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Benefits
Why get Increase in Authorised Capital done right
Room to grow
You can issue new shares without legal hurdles when the time comes.
Investor ready
Your capital structure is prepared ahead of fundraising.
Accurate documents
We draft the resolutions and the altered capital clause of the MOA.
Fee estimate upfront
We tell you the applicable ROC fee and stamp duty before filing.
Timely filing
SH-7 is filed within the due date to avoid additional fees.
Documents required
Keep these handy
Exact requirements vary case to case. Your expert shares a personalised checklist on your first call and checks everything before filing.
Process
How we get it done
A clear, step-by-step process with updates at every stage. Indicative timeline: 4–7 working days, subject to processing by the authority.
Review the Articles
We check that the AOA permits the increase and whether it needs amending too.
Board approval
The board approves the proposal and calls a general meeting.
Shareholder approval
Shareholders pass the resolution to increase authorised capital.
File SH-7
We file Form SH-7 with the altered MOA and pay the fee and stamp duty.
Updated records
The new authorised capital reflects on the MCA master data.
FAQ
Increase in Authorised Capital: common questions
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More in Company Changes & Closure
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