Increase In Authorised Share Capital

Increase in Authorised Share Capital requires board approval, special resolution, and filing SH-7 with ROC
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Increase in Authorized Share Capital of a Company in India

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.

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Procedure

  • Preparation of Board resolution
  • Preparation of extraordinary general meeting bypassing Ordinary Resolution (CTC of SR)
  • Preparation of Altered MOA
  • Preparation of Altered AOA
  • Pay e-Stamp duty

Documents Required

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Certified true copy of Ordinary Resolution for an increase in Authorised Share Capital
Copy of altered MOA
Copy of altered AOA, if any
Shorter notice consent, if meeting was convened at shorter notice
Any other document, as may be applicable.