Increase Authorised Capital

Supercharge Your Company's Growth - Increase Authorized Share Capital Today!

We will set up your compliances and documents.

Inquire Now!

Steps to Increase Authorized Share Capital of your company

Fill the form and provide documents

Just fill your contact details and share the required documents for increasing authorised share capital.

Sign and share the documents

Our team will share the documents for signatures, just sign and share scanned copies.

Filing of registration application

Registration application is filed with concerned ROC and we will keep you updated on its status.

Overview

Authorized Share Capital, also known as Nominal or Registered Share Capital, refers to the maximum amount of capital that a company is authorized to issue to its shareholders. It is the total value of shares that the company can allocate and offer to its shareholders for subscription. It is specified in the company’s MOA during its incorporation and can be altered later through the approval of shareholders and regulatory authorities.
Having authorized share capital does not mean that the entire amount needs to be subscribed or paid upfront by the shareholders. It merely represents the upper limit of shares that the company can issue over time as it raises capital for its operations, expansion, or other business purposes.
Increasing the authorized share capital can be done to facilitate future fund-raising activities, accommodate business growth, or attract potential investors. However, it is essential to comply with the legal procedures and regulatory requirements when making changes to the authorized share capital to ensure transparency and adherence to company laws and regulations.

Documents Required

A board resolution approving the proposal for increasing the authorized share capital.
A notice convening an EGM to obtain shareholders’ approval for the increase in authorized share capital.
A special resolution passed by the shareholders at the EGM, approving the alteration of the MOA to reflect the increase in authorized share capital.
An amended MoA reflecting the increased share capital, which is required to be filed with the Registrar of Companies (ROC).
An amended AoA, if necessary, to align with the increase in share capital.
Minutes of the board meeting where the decision to increase was taken.
Consent letter from shareholders approving the increase in authorized share capital.
Proof of payment of stamp duty (if applicable) on the increased share capital.
Filing of Form SH-7 with the ROC, which includes details of the increase in share capital.
Filing of Form MGT-14 with the ROC, which contains the special resolution passed at the EGM.
The company’s statutory registers, including the Register of Members and Register of Directors, should be updated to reflect the change in authorized share capital.
If new shares are issued as a result of the increased authorized share capital, new share certificates should be issued to shareholders.

Guidelines for Increase

Amend MOA: Convene a Board Meeting to approve the proposal for increasing the authorized share capital. Call an Extraordinary General Meeting (EGM) to obtain the approval of the shareholders to amend the MoA to reflect the increase in authorized share capital.
Shareholders’ Approval: Pass a special resolution at the EGM, with the approval of at least 75% of the shareholders present or voting through proxy, to authorize the increase in share capital.
Filing with ROC: File the necessary documents, including the special resolution, with the ROC within 30 days of passing the resolution.
Payment of Stamp Duty: Pay the stamp duty applicable on the increased authorized share capital as per the relevant state’s Stamp Act.
ROC Approval: Upon verification of the documents, the ROC will issue a fresh Certificate of Incorporation (COI) with the revised authorized share capital.
Allotment of Shares: Allot new shares to the existing shareholders or new investors based on the increased authorized share capital.
Payment of Fees: Pay the necessary fees to the ROC based on the increased capital.
Update in Other Records: Update the increased authorized share capital in the statutory registers, resolutions, and any other relevant documents.

Why BizReg?

We execute secretarial work for many companies and LLPs every month by leveraging our tech capabilities and the expertise of our team of legal professionals. By handling all the paperwork, we ensure a seamless interactive process with the government BizReg provides clarity on the incorporation process to set realistic expectations. Come on board and experience the ease and convenience.