Increase Authorized Capital.
Seamless MoA Amendment.
Expand your company's capacity to issue new shares. Our Company Secretaries will draft your EGM resolutions and file Form SH-7 with the MCA quickly and accurately.
Standard Increase
Only increases the authorized limit by altering your Memorandum of Association (MoA).
- Drafting Board & EGM Resolutions
- Alteration of Capital Clause in MoA
- Filing Form SH-7 with MCA
- Updated Master Data in 2-4 Days
Increase + Allotment
Increases your capital limit AND issues new shares to incoming investors or directors.
- Everything in Standard Plan (SH-7)
- Filing of Form PAS-3 (Allotment)
- Preparation of List of Allottees
- Generation of Share Certificates
*Note: The MCA government fee and state stamp duty depend strictly on the amount of capital you are increasing. Our team will calculate the exact challan amount before filing.
Why Do You Need to Increase Authorized Capital?
Authorized capital is the absolute maximum limit up to which a company can issue shares. You cannot issue new shares beyond this limit without expanding it first.
Fundraising & VC Investment
If you are raising funds from Venture Capitalists, Angel Investors, or Private Equity, you must issue them new shares. If your current paid-up capital already matches your authorized capital, you must increase the limit first.
Bringing in New Partners
When onboarding a new co-founder or strategic partner who will inject cash into the business in exchange for equity, expanding the authorized capital allows you to legally allot them fresh shares.
Issuing ESOPs
To attract and retain top talent, startups often offer Employee Stock Ownership Plans (ESOPs). Creating an ESOP pool usually requires creating new shares, which necessitates an increase in authorized capital.
Business Expansion & Tenders
Many large government tenders, bank loans, and corporate vendor empanelment processes require the bidding company to have a high paid-up capital to prove financial stability.
The Legal Filing Process
We handle all the legal drafting and MCA portal submissions. You just e-sign the documents.
Step 1: Board Meeting & Notice
Our experts draft the notice and resolution for a Board Meeting to seek approval for the capital increase and to schedule an Extraordinary General Meeting (EGM).
Step 2: Passing EGM Resolution
The EGM is held, and an Ordinary Resolution is passed by the shareholders to amend the Capital Clause in the Memorandum of Association (MoA).
Step 3: Filing Form SH-7
Within 30 days of the EGM, we file Form SH-7 with the Registrar of Companies (ROC), attaching the altered MoA and the certified resolution.
Step 4: Approval & Master Data
Once the MCA verifies the documents and the stamp duty payment, the company's Master Data is permanently updated with the new Authorized Capital limit.
Required Documents
Upload these to your secure client portal. Our team will prepare the necessary legal drafts for your signature.
Company Documents
A copy of the current Memorandum (MoA) and Articles of Association (AoA).
Digital Signature (DSC)
An active Class 3 DSC of one of the authorized directors to sign the MCA forms.
Allottee Details (For Combo)
If also allotting shares (PAS-3), the PAN, Aadhaar, and bank remittance proof of the persons receiving shares.
Adding a New Director?
If the new shares are being issued to a new partner joining your company, they must also be officially added to the board of directors. We can handle the DIR-12 filing simultaneously.