🧾 What is Increase in Authorized Capital?

The Authorized Share Capital is the maximum capital a company is legally allowed to issue to its shareholders. If a company plans to raise funds by issuing additional shares, it must first increase its authorized capital by passing a board and shareholder resolution and filing Form SH-7 with the Registrar of Companies (ROC).

This process also requires amendment of the Memorandum of Association (MOA).

✅ Who Needs This Service?

  • Private Limited Companies planning to issue additional equity shares
  • Startups or growing businesses raising funds
  • Companies issuing ESOPs or bonuses
  • Any business changing its capital structure

📑 Documents Required

  • Copy of current MOA and AOA
  • Board Resolution
  • Shareholder’s Special Resolution (if required)
  • Digital Signature Certificate (DSC) of Director
  • Company PAN and Incorporation Certificate
  • ROC master data
  • Details of new authorized capital

🛠️ Services Included

  • Review of existing capital structure
  • Drafting of Board and Shareholder Resolutions
  • Amendment of MOA (Clause V)
  • Preparation and filing of Form SH-7
  • Government fee calculation & guidance
  • Acknowledgement and MCA receipts

📋 Timeline & Government Fees

Task Timeline
Document Preparation 1–2 Working Days
Filing Form SH-7 with ROC Same Day after docs
Approval by ROC 3–5 Working Days

Note: Government fees vary depending on the amount of increase and the state of registration.

💡 Why Choose SITPakz Solution (SSPL)?

  • ✅ Affordable end-to-end processing
  • 📑 Legally compliant capital restructuring
  • 🔐 DSC and MCA portal submission
  • 📌 Expert resolution and MOA drafting
  • 💬 Ongoing compliance consultation

💬 Frequently Asked Questions (FAQs)

Q. Can authorized capital be increased anytime?
➡️ Yes, subject to board and shareholder approval.

Q. Is ROC fee applicable for capital increase?
➡️ Yes, based on the slab rates defined under Companies (Registration Offices and Fees) Rules.

Q. Can I issue new shares without increasing authorized capital?
➡️ No. Authorized capital must be increased first if the limit is exhausted.

Q. Is stamp duty payable?
➡️ Yes, in some states stamp duty applies on the increased capital amount.