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Increase Your Authorised Share Capital

A company can issue shares only up to the authorised capital in its Memorandum. Raise that ceiling first, and the paid-up capital can follow.

  • Board and members’ resolutions drafted
  • The capital clause of the MoA and the AoA altered
  • MGT-14 and SH-7 filed with the MCA
+3 more
  • An increase in paid-up capital is included in the package
  • Typically completed in 8 to 10 working days
  • A dedicated relationship manager from start to finish
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Starting at₹5,499+ Govt. Fees

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Increasing the authorised share capital

What authorised capital is, why it has to be raised before anything else can be, and why companies choose LegalWiz.in.

Share capital is the part of a company’s capital that is raised by issuing shares. A company may raise capital only up to the authorised capital stated in its Memorandum, and that ceiling can be increased at any time after incorporation on payment of an additional fee and stamp duty.

Because a company can issue shares only up to its authorised capital, that figure determines how many shares it can issue. It is set in the capital clause of the MoA. So to increase the capital-raising capacity, the authorised capital has to go up first. A company that wants to increase its paid-up capital cannot do so until it has room in the ceiling above it.

Altering the authorised capital clause means holding a meeting of the board and a meeting of the members for their respective consents, which is then followed by an application to the MCA.

Set in
The MoA capital clause
And it caps what may be issued
Approvals needed
Three
The board, the members, and the RoC
Filing window
30 days
From the shareholders’ consent
Filed in
MGT-14 and SH-7
The resolution, then the notice
Paid-up capital
Included
The increase, but not a share transfer
Turnaround
8 to 10 working days
Subject to government processing

Why companies choose LegalWiz.in

  • An expert team of qualified CA, CS and lawyers
  • A dedicated relationship manager with on-call support
  • The entire change is handled online
  • Quick turnaround and economical pricing
  • Thousands of happy customers across every state in India
  • Backed by secure technology
  • Exclusive partner offers on web hosting, payment gateways and more

What the service covers

Your relationship manager and the filing team handle everything below. You supply the documents once and approve the drafts.

  • Consultancy on the increase in capital
  • Drafting of the necessary board and members’ resolutions
  • Preparation of the other necessary documents
  • Alteration of the Memorandum and Articles of Association
  • Filing of the application for the increase in capital
  • Increase in the paid-up share capital of the company
  • Updated MCA master data, shared with you

Government fees and stamp duty are charged at actuals, and both scale with the authorised capital. The transfer of shares is not included in this package.

The four kinds of share capital

  • Authorised capital

    The maximum amount of capital a company may raise. This is the figure this service increases.

  • Issued capital

    The part of the authorised capital that has been issued in order to raise capital.

  • Subscribed capital

    The part of the issued capital that the shareholders have subscribed to pay.

  • Paid-up capital

    The part of the capital that has been subscribed and actually paid to the company by the shareholders.

Why companies increase their authorised capital

Two reasons, and both are consequences of the same ceiling.

  • It allows a further issue of capital

    A company cannot raise capital beyond the amount prescribed in its Memorandum. So where the need arises to increase the paid-up capital, the authorised capital has to be increased first, and there is no way round it.

  • It increases borrowing capacity

    An increase in internal funding capacity supports the company’s ability to borrow. The higher the capital, the higher the net worth, and the higher the borrowing capacity that follows from it.

Customer reviews

What our clients say

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Documents required to increase the authorised capital

A short checklist. Everything else is drafted for you.

  • Digital Signature Certificate

    The DSC of one of the authorised directors of the company.

  • MoA and AoA

    A copy of the latest amended Memorandum and Articles of Association.

  • Certificate of Incorporation

    The Certificate of Incorporation of the company.

  • PAN card

    A copy of the PAN card of the company.

Increase your capital in three easy steps

  1. Step 01

    Answer a few quick questions

    • Spend less than 10 minutes on a simple set of questions
    • Tell us the authorised capital you want to move to
    • Pay through a secure payment gateway
  2. Step 02

    Our experts take over

    • You are assigned a dedicated relationship manager
    • The necessary resolutions and documents are drafted
    • The MoA and AoA are altered
    • The application is filed and your MCA master data updated
  3. Step 03

    Your authorised capital is increased

    • The whole process takes 8 to 10 working days
    • The new figure appears on the company’s master data

Subject to government processing time.

How long the increase takes

Ten working days end to end. The resolutions and the filing take six; the rest is the Registrar’s.

  1. Day 1

    1 of 10 working days

    • Consultancy on the increase in capital
  2. Days 2 to 4

    3 of 10 working days

    • Drafting of the necessary resolutions
    • Drafting of the other necessary documents
    • You return the prepared documents after signature
  3. Days 5 to 6

    2 of 10 working days

    • Preparation of the application for the change
    • Filing of the application and the necessary documents with the MCA
  4. Days 7 to 10

    4 of 10 working days

    • Government processing time
    • Master data of the company updated

Subject to government processing time.

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Have questions? Find answers here

Still have a question? Our team is happy to help, at no charge and with no obligation to buy anything.

Talk to an expert
  • Which approvals are required to increase the share capital?

    The increase has to receive three consents or approvals:

    1. Consent from the board
    2. Consent from the members of the company
    3. Approval from the Registrar of Companies concerned
  • When do the forms have to be filed with the MCA?

    Within 30 days of obtaining the consent of the shareholders for the increase in share capital.

    The resolution passed is notified in MGT-14, and the notice of increase is filed in SH-7 with the altered MoA and AoA.

  • Is the increase reflected on the MCA portal?

    Yes. The total authorised and paid-up capital is displayed on the master data of the company on the MCA portal.

  • Does a higher authorised capital increase our filing fees?

    Yes. The government fee for any e-form filed with the MCA depends on the authorised capital of the company.

    So an increase in authorised capital does raise the fee for future online filings, though only to a nominal extent.

  • Does the package include an increase in paid-up share capital?

    Yes, the package cost includes the increase in the paid-up capital of the company.

    It does not include the transfer of shares.

Increase your authorised share capital

Lift the ceiling before you need the room under it.

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