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Breif
Increasing your company’s paid-up capital means adding more actual funds by issuing new shares that shareholders pay for. This helps your business raise money, expand operations, and strengthen its financial base.
Overview
The process starts with company approval through board and shareholder resolutions, followed by amending the Memorandum of Association to reflect the new capital. Then, the company files the required forms with the MCA for official approval. Once approved, new shares are issued, and company records are updated. This straightforward procedure helps companies boost their funds legally and transparently to support growth and investment opportunities.
Process
Step 1 - Prepare DSC of the Authorised Director (If not have)
Step 2 - Check AoA to ensure authorised capital can be increased.
Step 2 –Hold Board Meeting and pass a resolution approving the increase.
Step 3 – Get Shareholders’ Approval via an Ordinary Resolution in a General Meeting.
Step 4 – Amend MoA to reflect the new authorised capital.
Step 5 – File SH-7 with MCA – along with required documents.
Step 6 – Pay ROC Fees & Stamp Duty - as applicable.
Step 7 – ROC Approval – and update company records accordingly.
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. 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
- Increase Authorised Capital (if required) – Form SH-7: 1–2 days
- Drafting Share Allotment Documents – PAS-3: 1–2 days
- Online Filing with MCA – Form PAS-3: 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 and approved by the Board of Directors for the paid-up capital increase.
- Shareholders’ Resolution (Ordinary Resolution) – Approved in the General Meeting if required.
- Amended Memorandum of Association (MoA) – Updated to reflect any increase in authorised capital (if applicable).
- Form SH-7 Filing – Filed with MCA if authorised capital is being increased.'
- Form PAS-3 Filing – Filed to allot new shares and legally increase paid-up capital.
- 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 – Shareholding records and share certificates updated post allotment.
Why Choose Us
Bizeneed makes increasing your company’s paid-up capital fast, easy, and fully compliant. Our expert team handles everything—from preparing Board and Shareholders’ resolutions, amending the Memorandum of Association, to filing Form SH-7 with the MCA and obtaining ROC approval. With end-to-end support, we take care of all regulatory requirements and ensure your statutory records are updated accurately. Entrepreneurs trust us for our professional guidance, timely execution, and seamless process, allowing them to focus on growing their business while we manage the technicalities.
FAQs
Increasing paid-up capital means allotting additional shares to existing or new shareholders, thereby increasing the company’s actual share capital.
Any private, public, or Section 8 company can apply to increase its authorised capital if permitted by its Articles of Association.
It helps raise funds, support business expansion, issue new shares to investors, and strengthen financial credibility.
Yes, shareholders must approve the increase via an Ordinary Resolution in a General Meeting.
Yes, they must comply with regulatory provisions and obtain approvals as required under the Companies Act.
It involves Board and Shareholders’ resolutions, amending the MoA (if required), filing Form SH-7 for authorised capital (if needed), and Form PAS-3 to allot shares.
Typically 7–10 working days from the receipt of all required documents.
SH-7 is filed to increase the company’s authorised capital before issuing new shares.
PAS-3 is filed to allot new shares and officially increase the paid-up capital of the company.
Yes, both SH-7 and PAS-3 filings can be tracked through the MCA portal using the respective SRN (Service Request Number).
- KYC of directors and shareholders (PAN, Aadhaar)
- Current shareholding pattern
- 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 file SH-7 and PAS-3 online.
Yes, the process can be repeated whenever the company needs additional capital.
Yes, once MCA approves the filings, new shares can be issued to shareholders or investors.
- Easier fundraising and issuing of shares
- Supports business growth and expansion
- Builds investor confidence
- Improves creditworthiness
It is illegal and can attract penalties under the Companies Act, 2013.
Yes, both SH-7 and PAS-3 filings must be approved for the increase to be valid.
Yes, statutory registers and share certificates are updated post allotment.
Yes, we assist with statutory compliance, updated registers, and filings post allotment.