Increase

Authorized Capital

Get your company’s authorized capital increased with expert ROC filings starting at just INR 3499/- only.

Thousands of companies in India choose Ebizfiling to manage capital amendments smoothly and on time.

Women in court
Apply Now

Simple | Accurate | Compliant

Increase Authorized Capital

All you need to know

What does it mean by Increase Authorized Capital?

Increase Authorized Capital means raising the maximum limit of share capital that a company is permitted to issue as mentioned in its Memorandum of Association (MOA). Without this step, a company cannot issue shares beyond the approved limit, even if it needs funds.

To expand business, invite investors, or restructure finances, companies must file the form for increase in authorized capital with the Registrar of Companies (ROC). Once approved, the company gets the flexibility to issue more shares and raise additional capital legally.

 

Authorized Capital Increase Made Simple

Procedure for Increase in Authorized Share Capital

The procedure for increase in authorized share capital starts with checking the Articles of Association (AOA) to confirm if it allows capital amendments. If not, the AOA must be altered. Next, the company’s board passes a resolution and calls an Extraordinary General Meeting (EGM) to get shareholder approval.

After approval, the company must file Form SH-7 with the ROC, along with supporting documents like resolutions and updated MOA. On successful filing, the ROC updates records, and the company is permitted to issue shares up to the revised limit.

Why Choose Ebizfiling for Increase Authorized Capital Services?

At Ebizfiling, we simplify the entire process of increase in authorized share capital by handling resolutions, document preparation, and ROC filings on your behalf. Our team ensures accuracy in preparing the form for increase in authorized capital and submitting it within deadlines.

Thousands of companies rely on us because we provide expert CA/CS support, transparent pricing, and timely updates. With Ebizfiling, increasing your authorized capital becomes fast, compliant, and stress-free

Increase Authorized Capital Fees

Choose Your Package

ESSENTIAL

3499/-

(All Inclusive)

  • Increase in authorised capital of upto Rs.10 lakhs.

ENHANCED

4499/-

(All Inclusive)

  • Increase in authorised capital of upto Rs.25 lakhs.

ULTIMATE

5499/-

(All Inclusive)

  • Increase in authorised capital of upto Rs.100 lakhs.

Benefits of Increasing Authorized Share Capital

Access to Funds

Increasing authorized share capital allows companies to issue more shares and raise additional funds.

Supports Expansion

It enables businesses to meet financial requirements for growth, diversification, or new projects.

Investor Confidence

A higher capital limit makes the company more attractive and reliable for potential investors.

Legal Compliance

Companies must complete this step before issuing shares beyond the approved capital in the MOA.

Financial Flexibility

With increased capital, companies can restructure their finances to manage operations effectively.

Long-Term Planning

Raising the limit ensures companies are prepared for future funding and scaling opportunities.

Strengthens Credibility

A company with higher authorized capital often appears more stable and trustworthy.

Smooth Share Issue

It ensures a hassle-free process for allotting new shares whenever required in the business.

Documents Required for Increase in Authorized Capital

You’ll need to provide: 

  • Copy of Memorandum of Association (MOA)

  • Copy of Articles of Association (AOA)

  • Board Resolution for increase in capital

  • Shareholder Resolution (EGM approval)

  • Digital Signature Certificate (DSC) of Director

  • Form SH-7 filed with ROC

Why Does a Company Need to Increase Authorized Share Capital?

To Raise Funds

Companies often increase authorized share capital to issue more shares and raise money for expansion.

Investor Demands

When new investors join, companies must increase capital limits to allot fresh shares legally.

For Business Growth

Higher capital allows businesses to restructure finances and support long-term growth plans.

For Legal Compliance

The Companies Act requires increasing capital before issuing shares beyond the existing limit.

Increase in Authorized Capital Process Flow

 

5 Easy Steps

1

Complete Simple Checklist

2

Submit Documents

3

Verification of Documents

4

Filing Forms with ROC

5

Your Authorised Capital is Increased

Review MOA

Private limited registration

Our Compliance Manager checks the Memorandum of Association (MOA) for the existing capital clause and verifies documents to proceed.

Board Resolution

We draft and assist in passing the required Board Resolution, preparing documents for director approval.

EGM & Filing

Verified Checklist

We help conduct the EGM, secure shareholder consent, and file Form SH-7 with ROC. After approval, you receive the updated Incorporation Certificate.

FAQs

FAQs on Increase Authorized Capital

Get answers to all your queries

  • What does increase authorized capital mean?

    Increase authorized capital means raising the maximum share capital a company can issue, as stated in its Memorandum of Association.

  • Why is increase in authorized share capital required?

    It is required when a company needs to issue more shares than its existing authorized capital allows.

  • Which form is used for increase in authorized capital?

    The company must file Form SH-7 with the Registrar of Companies to record the increase in authorized share capital.

  • What is the procedure for increase in authorized share capital?

    The procedure for increase in authorized share capital involves passing board and shareholder resolutions and filing SH-7 with ROC.

  • Can every company increase its authorized capital?

    Yes, any company can file the form for increase in authorized capital, provided its Articles of Association permit such changes.

  • What if the Articles of Association do not allow capital increase?

    The company must first amend the Articles of Association before filing for increase authorized capital.

  • What is the government fee for increase in authorized capital?

    The fee depends on the amount of increase and the company’s authorized capital slab, as per MCA guidelines.

  • Can a private limited company increase authorized capital?

    Yes, a private company can file the form for increase in authorized capital following the Companies Act, 2013.

  • What documents are required for increase in authorized capital?

    Documents include MOA, AOA, board and shareholder resolutions, DSC of director, and Form SH-7.

  • Who approves the increase in authorized share capital?

    The shareholders approve the increase through an Extraordinary General Meeting, followed by ROC filing.

  • How long does the process take?

    The process of increase authorized capital usually takes 5–10 working days once all documents are ready.

  • Can a company issue shares without increasing authorized capital?

    No, issuing shares beyond the current authorized limit is not valid without completing the increase first.

  • What is the difference between authorized capital and paid-up capital?

    Authorized capital is the maximum share capital a company can issue, while paid-up capital is the actual amount issued.

  • Is ROC approval mandatory for increase in authorized share capital?

    Yes, the change is valid only after approval and record update by the Registrar of Companies.

  • Can the authorized capital be reduced after increase?

    Yes, companies may reduce capital later, but it requires a separate approval process under the Act.

  • Do startups need to increase authorized capital?

    Startups often opt for increase in authorized share capital when raising funds from investors.

  • Can increase authorized capital be done online?

    Yes, the entire filing, including Form SH-7, is submitted online through the MCA portal.

  • What happens if SH-7 is not filed on time?

    Delays in filing SH-7 may attract penalties, and the ROC will not record the capital increase.

  • Can foreign-owned companies increase authorized capital in India?

    Yes, foreign-owned companies registered in India must also follow the same procedure for increase in authorized share capital.

  • Why choose EbizFiling for increase in authorized capital services?

    EbizFiling provides expert guidance, quick filing of SH-7, and end-to-end support for smooth compliance.

Reviews

  • client review, Ebizfiling

    Abdul Shukkoor

    29 Mar 2022

    100% we can trust Ebiz Filing for a business setup as i was relaxed during my company registration "Zaabi Kids Wear Private Limited" and now my dream become reality. Thank you all of EbizFiling for your Team work and your effort and really appreciate it

  • Abhishek Pandey

    Abhishek Pandey

    04 Mar 2024

    It was great experience with ebiz to get my filing done I especially want to thanks Mr.Parth Nai who was there to assist and solve all our queries.He make entire process very smooth.Kudos to entire Ebiz team.

  • Client Review, Ebizfiling

    Aishwarya M

    18 Apr 2022

    I took trade mark registration from Ebizfiling india private limited thank you for registration and service was excelent and recived the certificate from anitha kv

Hi, Welcome to EbizFiling!

Hello there!!! Let us know if you have any Questions.

Thank you for your message.

whatsapp