Increasing Authorized Share Capital

✅ Increase Authorized Share Capital – Simplified & Affordable! – Just ₹2,999/-

🔹 Hassle-Free & Quick Approval Process
🔹 Transparent Pricing – No Hidden Charges
🔹 Expert Legal Guidance from Start to Finish

👉 Upgrade Your Company’s Capital Structure Today!

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About Increasing Authorized Share Capital

📌 What is Authorised Share Capital?

Authorised Share Capital refers to the maximum amount of share capital that a company is legally allowed to issue to its shareholders. It is mentioned in the company’s Memorandum of Association (MOA) and can be increased as per business requirements.

If a company needs additional funds for expansion, investment, or operational growth, it may require an increase in authorised share capital to issue new shares.

💡 Why Increase Authorised Share Capital?

  1. To Raise Additional Funds – A company can issue more shares to raise capital for business expansion, new projects, or working capital needs.
  2. To Bring in New Investors – Increasing share capital allows the company to onboard new investors, venture capitalists, or private equity firms.
  3. To Issue Bonus Shares – Companies need a higher authorised share capital to distribute bonus shares to existing shareholders.
  4. To Improve Financial Stability – More share capital strengthens the company’s balance sheet, making it more attractive to lenders and investors.
  5. To Meet Regulatory or Compliance Requirements – Certain industries or regulatory bodies may require companies to maintain a specific share capital threshold.

  💼 Ideal for Growing Businesses – Expand Your Capital for Future Growth!

📝 Process to Increase Authorised Share Capital

  1. Check the Company’s Articles of Association (AOA) – Ensure that the AOA allows for an increase in authorised share capital. If not, amend the AOA first.
  2. Board Meeting & Resolution – Conduct a Board Meeting and pass a resolution to approve the increase.
  3. Shareholders’ Approval (EGM) – Hold an Extraordinary General Meeting (EGM) to obtain approval from shareholders via a special resolution.
  4. Filing with ROC (Form SH-7) – File Form SH-7 with the Registrar of Companies (ROC) along with the required documents and government fees.
  5. Approval & Updated MOA – Once the ROC approves, the Memorandum of Association (MOA) is updated to reflect the new authorised share capital.

🎯 Why Choose LegalBoss for Increasing Authorised Share Capital?

✔️ End-to-End Legal Support – From Board Resolutions to ROC filings, we handle everything.
✔️ Quick & Hassle-Free Process – Ensuring smooth approval with minimum effort from your side.
✔️ Transparent Pricing – No Hidden Charges
✔️ Expert Consultation – Guidance on the right capital structure for your business needs.

📅 Ready to Expand Your Business? Increase Your Authorised Share Capital with LegalBoss Today!

 

FAQ on Increasing Authorized Share Capital

Can a company increase its share capital without shareholder approval?

No, shareholder approval through a special resolution in an EGM is mandatory.

How can LegalBoss help in increasing Authorized Share Capital?

End-to-End Legal Assistance – We handle board resolutions, EGM approvals, and ROC filings.
✔️ Quick & Hassle-Free Process – Minimal effort required from your side.
✔️ Affordable Pricing – No Hidden Charges
✔️ Expert Consultation – Guidance on the right capital structure for your business.

How long does it take to increase Authorized Share Capital?

The process usually takes 7-10 working days, depending on the ROC processing time.

Is increasing Authorized Share Capital mandatory for issuing new shares?

Yes, if a company’s existing authorized capital is fully utilized, it must first increase the limit before issuing new shares.

Is this required to compulsion to inform ROC ?

Yes, The form must be filed within 30 days after obtaining consent from shareholders for the share capital increase. The resolution passed is notified in MGT-14 and notice of increase is filed in SH-7 with altered MoA and AoA.

What are the ROC/Government fees for increasing Authorized Share Capital?
The ROC fees depend on the amount of increase in authorized share capital. LegalBoss provides a transparent cost estimate before proceeding.
  • Have to pay Filling Fees
  • Have to pay MOA registration Fees based on Authorized Share capital
  • have to Pay Stamp duty based on Authorized Share Capital
What happens if a company issues shares beyond its Authorized Share Capital?

Issuing shares beyond the authorized limit is illegal and can lead to penalties and compliance issues. Always ensure an authorized capital increase before issuing new shares.

What is Form SH-7?

Form SH-7 is the official document filed with the ROC to register an increase in Authorised Share Capital. It includes details of the board resolution, EGM approval, and revised MOA.

What Kind of Process has to follow for Increasing Authorised Share capital?
  • Conduct Board Meeting
  • Conduct General meeting

If, Shorter notice for board meeting and/or General Meeting that Consent for the Board of Directors / Shareholder required.

Required Documents for Increasing Authorised Share capital

Minimum Requirements

Quick Documents

  1. Certificate of Incorporation
  2. Company PAN Card
  3. Company Memorandum and Article of Association (MOA & AOA)
  4. List of Share Holders
  5. List of Directors

Specific Requirements

Specific Requirements
  1. DSC (Digital Signature)
  2. Capital Increase From Rs.__ To Rs.___.
  3. Purposed of Capital Increase
  4. Earlier Stamp duty paid Challan and Forms

Points to make your decision easy

Planning to Grow

STEPS & TIME DURATION
1

Day 1-2

  • Free Expert Consultation
  • Collect Basic Documents and Information 

2

Day 11-15

  • Getting Approval
  • Getting Updated Master Data 

3

Day 3-5

  • Preparation of Documents for Signing
  • Preparation for ROC forms

4

Day 6-10

  • Filling of ROC Forms
  • Paying Registration Fees and Stamp duty