A company while performing its business operations may need more funds for expansion of its business or, to meet its expenditure. This requirement can be met by increasing its authorized share capital. The authorized share capital is the maximum amount of shares value that a company can allot to its shareholders.

Authorized capital is mentioned in the Memorandum of Association (MOA) of the company. This sets a limit on the capacity of the company to raise its equity capital. The government fee of company registration also depends on the authorized capital of the company. 

To increase Authorized share capital you have to seek prior approval before rising the authorized capital of the company.