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Breif
Increasing a company’s authorised capital means raising the maximum number of shares it can issue. This gives businesses the flexibility to bring in more investors, raise funds, and grow smoothly.
Overview
The process is simple and straightforward. It starts with board approval and shareholder consent, followed by updating the company’s Memorandum of Association and filing the required form (SH-7) with the MCA. Once done, the company can issue new shares without any hassles, making it easier to expand and strengthen investor confidence.
Process
Step 1 - Prepare DSC of the Authorised Director (If not have)
Step 2 - Check AoA – Ensure the Articles of Association allow an increase in authorised capital.
Step 3 – Board Meeting – Pass a Board Resolution approving the increase.
Step 4 – Shareholders’ Approval – Hold a General Meeting and pass an Ordinary Resolution.
Step 5 – Amend MoA – Update the capital clause in the Memorandum of Association.
Step 6 – File SH-7 with MCA – Submit the form along with resolutions and altered MoA.
Step 7 – Pay ROC Fees & Stamp Duty – Pay fees based on the increased capital.
Step 8 – ROC Approval – Get the increase approved and updated in MCA records.
Checklist
Details & Documents Required for Increasing Authorised Capital
1. Identity & Address Proofs
- Directors’ KYC Documents – PAN card, Aadhar, or Passport.
- Shareholders’ KYC Documents – PAN card, Aadhar, or Passport.
2. Shareholding & Capital Details
- Current Shareholding Pattern – List of existing shareholders with shareholding percentages.
- Proposed Shareholding Post-Increase – Planned distribution of shares after increase.
3. Bank Details
- Bank Account Information – For payment of ROC fees or verification purposes.
4. Existing Share Certificates (if applicable)
- Copies of Share Certificates – For updating the company records if shares were already issued.
5. Authorized Director DSC
Time Taken
Total Time: Approximately 7–10 working days from the date of receipt of all required documents.
- DSC Verification & Preparation: 1 day
- Drafting Board & Shareholders’ Resolutions: 2 days
- Online Filing with MCA (Form SH-7): 1 day
- ROC Verification & Approval: 3 day
Deliverable
The following deliverables are included in the Biz Silver Plan. Deliverables for other packages may vary accordingly:
- Board Resolution – Drafted, reviewed, and approved by the company’s Board of Directors.
- Shareholders’ Resolution (Ordinary Resolution) – Prepared for approval in the General Meeting.
- Amended Memorandum of Association (MoA) – Updated to reflect the new authorised capital.
- Form SH-7 Filing – Duly prepared and submitted to the MCA with all supporting documents.
- ROC Fee & Stamp Duty Handling – Calculation and payment of fees included.
- MCA Approval & Confirmation – Certificate of increase in authorised capital updated in MCA records.
- Updated Statutory Registers – Share capital records and registers amended post-approval.
Why Choose Us
Bizeneed ensures a smooth, hassle-free increase in your company’s authorised capital with end-to-end support—from preparing Board and Shareholders’ resolutions to amending the MoA, filing Form SH-7 with MCA, and handling ROC approvals. Our expert team prioritizes your requirements and maintains professional, friendly communication throughout the process, making it easy for your business to raise capital and grow seamlessly.
FAQs
Increase in authorised capital is the process of raising the maximum amount of share capital a company can issue, as specified in its Memorandum of Association (MoA).
Any private, public, or Section 8 company can apply to increase its authorised capital if permitted by its Articles of Association.
Yes, shareholders must approve the increase through an Ordinary Resolution in a General Meeting.
It allows a company to issue additional shares, raise funds, and support business expansion without repeatedly amending the MoA.
Yes, but they must comply with the relevant provisions of the Companies Act, 2013 and obtain necessary approvals.
The process involves passing Board and Shareholders’ resolutions, amending the MoA, and filing Form SH-7 with MCA.
Typically, 7–10 working days from the receipt of all required documents.
Form SH-7 is the MCA e-form used to file an increase in authorised capital and amend the MoA.
Yes, ROC fees and stamp duty are applicable based on the amount of increase.
Yes, after filing SH-7, you can track the approval status through the MCA portal.
- KYC of directors and shareholders (PAN, Aadhaar)
- Current shareholding pattern
- Proposed shareholding after increase
Bank details for fee payment
- Copies of existing share certificates (if issued)
Your service provider or company secretary typically drafts the Board and Shareholders’ resolutions, and updates the MoA.
Yes, DSC of directors is required to submit SH-7 online.
Yes, a company can increase its authorised capital multiple times by following the same procedure.
Yes, once MCA approves the increase and records are updated, the company can issue additional shares.
- Enables fundraising and issuing new shares
- Supports business expansion and growth
- Builds investor confidence
- Ensures smooth compliance with MCA regulations
Issuing shares beyond authorised capital without approval is illegal and can attract penalties under the Companies Act, 2013.
Yes, the increase is only valid after ROC/MCA approval and updating of records.
Yes, services include updating statutory registers, issuing new share certificates, and ongoing compliance support.