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Increase Authorized Capital of Company Online

Increase Authorized Share Capital of Your Company

Scale your business and raise capital seamlessly with 100% MCA compliance and expert support from FOXTAX.

  • Drafting of Board & Shareholder Resolutions
  • Filing of MCA Form SH-7 with ROC
  • Stamp Duty Calculation & Payment Assistance
  • End-to-End Tracking & Approval Management
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    What is an Increase in Authorized Capital?

    Authorized Share Capital is the maximum amount of share capital that a company is legally authorized to issue to its shareholders as per its Memorandum of Association (MOA). When a growing company needs to raise external funds, bring in new investors, or issue new shares, it may exhaust its existing limit. To accommodate this expansion, the company must formally increase its authorized capital by following the procedures laid down under the Companies Act, 2013.

    This process requires altering the Capital Clause of the MOA, passing necessary corporate resolutions, paying the requisite state-specific stamp duty, and filing official returns with the Ministry of Corporate Affairs (MCA). At FOXTAX, our dedicated compliance experts handle the entire legal documentation, stamp duty calculations, and government portal filings so you can focus entirely on scaling your business operations.

    Who Needs to Increase Authorized Capital?

    • Companies looking to raise fresh equity funding from Angel Investors, Venture Capitals (VCs), or private investors.
    • Businesses planning to issue Bonus Shares or Right Shares to existing shareholders.
    • Companies converting existing directors’ loans or debts into equity shares.
    • Growing startups scaling up operations that require a higher capital base to improve borrowing capacity and corporate credibility.

    Documents Required for the Process

    • Copy of the latest updated Memorandum of Association (MOA) and Articles of Association (AOA).
    • Digital Signature Certificate (DSC) of an authorized Director.
    • Notice and Agenda of the Board Meeting and Extraordinary General Meeting (EGM).
    • Copy of the Board Resolution and Ordinary/Special Resolution passed by shareholders.

    ESI Returns Filing Packages

    Choose a plan that best fits your business needs. All packages include expert support and a seamless online registration process.

    Starter

    Packages starting from

    ₹ 999/-
    (All Inclusive)

    • 1 ESI Return upto 10 employees

    Advanced

    Packages starting from

    ₹ 9,999/-
    (All Inclusive)

    • One Year ESI Returns upto 20 employees

    Premium

    Packages starting from

    ₹ 14,999/-
    (All Inclusive)

    • One Year ESI Returns upto 50 employees

    Benefits of Increase Authorized Share Capital of Your Company

    Legal Fundraising Readiness

    Keeps your company legally equipped to accept new investments, venture capital, or external equity funding without compliance delays.

    Enhanced Borrowing Power

    A higher authorized capital strengthens your financial credentials, making it easier to secure corporate bank loans, credit lines, and institutional funding.

    Smooth Equity Dilution

    Seamlessly issue new shares to incoming partners, directors, or employees via ESOPs without breaching statutory limits.

    Retained Corporate Compliance

    Avoid hefty MCA penalties, compounding fees, and legal disputes by strictly adhering to the proper procedures of the Companies Act, 2013.

    Higher Valuation Potential

    Demonstrates business expansion and growth intent to stakeholders, vendors, and clients, directly boosting marketplace trust.

    Flexible Financial Structuring

    Gives management the flexibility to structure equity and debt perfectly, supporting long-term strategic milestones.

    Step-by-Step Process of Company Increase Authorized Share Capital

    FOXTAX follows a smooth and efficient filing process:

    Check Current AOA Limits

    We review your Articles of Association (AOA) to ensure it permits an increase in capital. If not, we draft an amendment to the AOA alongside the capital increase.

    Board Meeting & Resolution

    We draft the official Notice and Agenda, and assist in passing the Board Resolution to approve the capital hike and call an Extraordinary General Meeting (EGM).

    Shareholder Approval (EGM)

    We prepare the explanatory statement and resolutions for the EGM, where shareholders pass an Ordinary Resolution to formally alter the MOA.

    Stamp Duty Calculation

    Our team calculates the exact state-specific stamp duty and MCA portal fees required based on the amount of capital being increased.

    Filing MCA Form SH-7

    Within 30 days of passing the resolution, we digitally sign and file Form SH-7 on the MCA V3 portal with all mandatory attachments.

    RoC Approval & Updated MOA

    The Registrar of Companies (RoC) reviews the filing. Once approved, the new authorized capital is officially registered, and an updated master data is generated.

    Frequently Asked Questions (FAQs)

    What is the difference between Authorized Capital and Paid-up Capital?
    Authorized Capital is the maximum limit of shares a company can issue to its shareholders. Paid-up Capital is the actual amount of money investors have contributed against the shares issued to them. Paid-up capital can never exceed authorized capital.
    What is the time limit to file Form SH-7 with the RoC?
    Form SH-7 must be filed with the Registrar of Companies within 30 days from the date of passing the Ordinary Resolution in the EGM. Late filing attracts heavy per-day penalties.
    Is it mandatory to alter both the MOA and AOA?
    The Capital Clause of the MOA must always be altered. The AOA only needs amendment if it does not explicitly contain a clause authorizing the company to increase its share capital.
    How is the government fee and stamp duty calculated?
    The MCA portal fee and state stamp duty depend entirely on the amount of capital being increased and the state in which your company's registered office is located.
    Can FOXTAX handle the entire process online?
    Yes, the entire process is managed online by FOXTAX. You only need to provide the necessary scanned documents and digital signatures; our experts handle the rest.
    GET IN TOUCH

    Need help with increasing your company's Authorized Capital?

    Protect your corporate compliance and keep your business funding-ready with our expert assistance. Let FOXTAX manage the paperwork, resolutions, and portal filings smoothly.

    Don’t let missing deadlines drag down your business’s legal health. Operating from Bengaluru and serving companies across India, we handle the legal complexities, drafting, and ROC coordination to keep your corporate filings perfectly on track.

    Talk to Expert Now!

    +91-98456 01310

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