Increase in Authorised Share Capital
Your trusted partner for capital restructuring — enabling business expansion, fundraising readiness, and regulatory compliance under MCA framework.
Overview
Authorised Share Capital refers to the maximum amount of share capital that a company is permitted to issue to its shareholders, as defined in its Memorandum of Association (MoA). An Increase in Authorised Share Capital is required when a company plans to raise additional funds, issue new shares to investors, or expand operations.
This process is governed under the Companies Act, 2013 and requires approval from shareholders along with formal filings with the Registrar of Companies (RoC). Without increasing authorised capital, a company cannot issue shares beyond its existing limit, making this a critical step for startups and growing enterprises seeking fresh investment.
Key Benefits
Fundraising Readiness
Prepare your company's legal structure to receive equity investment from VCs, Angels, or private investors.
Business Expansion
Enable the issuance of fresh equity to fund new projects, acquisitions, or market expansions.
Investor Onboarding
Create room in your capital structure to accommodate new shareholders without hitting legal limits.
Capital Flexibility
Ensure you have the authorization to issue shares in the future without urgent last-minute filings.
Statutory Compliance
Maintain a legally compliant capital structure as per the latest Ministry of Corporate Affairs (MCA) norms.
Professional Valuation
A structured increase in capital often aligns with a positive growth trajectory and professional valuation.
Eligibility Requirements
Ensure your business meets these basic criteria for a smooth registration process.
Expert Tip
Having all directors present in India is not mandatory, but at least one director must be a resident of India (stayed in India for 182+ days).
Documents Required
Keep these documents ready to fast-track your application.
Corporate Documents
- Current Certificate of Incorporation
- Existing MoA & AOA
- Digital Signatures (DSC) of Directors
Required Resolutions
- Board Resolution for Capital Increase
- Shareholder Resolution (Ordinary)
- Minutes of the EGM
Application Details
- Revised Capital Clause of MoA
- Proof of Stamp Duty Payment
- Explanatory Statement for EGM
Registration Process
Our seamless digital-first approach ensures completion in the fastest possible time.
Capital Planning & AOA Review
Analyzing current capital and ensuring the Articles of Association permit an increase.
Board Meeting & Proposal
Approving the proposed increase and authorizing an Extraordinary General Meeting (EGM).
Shareholder Meeting (EGM)
Passing an Ordinary Resolution to approve the increase in authorised share capital.
Filing Form SH-7
Notifying the ROC about the alteration of share capital within 30 days of the resolution.
Stamp Duty Payment
Paying the requisite state-level stamp duty on the increased capital amount.
MoA Update & Submission
Updating the Capital Clause in the Memorandum of Association and filing with MCA.
MCA Approval & Record Update
Review of the filing by the ROC and updating the company's master data on the portal.
Statutory Record Update
Reflecting the new authorised capital in the company's statutory registers.
Mandatory Compliance
Staying compliant is crucial for your company's good standing. Non-compliance may lead to penalties and director disqualification.
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FAQs
Common questions about Increase in Authorised Share Capital
Prepare for Your Next Funding Round
Increase your company's Authorised Share Capital seamlessly with expert support from Bizmint LLP.