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Increase in authorised share capital, Procedure, Fee and Legal Compliances

Increase in Authorised Share Capital | Allotment of New Share Capital to Shareholders

Board Resolution -> File SH 7 within 30 days -> Pay Stamp Duty and Fee-> Approval of ROC
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Authorised share capital is the maximum amount of share capital which is authorised by the memorandum of association of the company. Any company can bring in new capital only upto the level of authorised share capital. Example – A company has authorised share capital as per MOA of Rs. 10,00,000 and paid up share capital of Rs. 5,00,000. Now company made a plan to issue fresh equity share capital of Rs 10,00,000, BUT the authorised capital limit at present is Rs. 10,00,000. In that situation First Company need to increase its Authorised Share capital upto Rs 15,00,000 or more and then shall proceed for issue and allotment of new shares to shareholders. HERE KNOW the process of Increase of Authorised Share Capital, Stamp duty, Govt Fee and legal procedure and paper works .

How to take our Professional Service?

What are the details required for Allotment of additional share capital?

Details of Share Application Money Received ( Name, Date of payment, Amount)
Bank Statement of the company in support of Share Application Money Received
New Shareholders Documents :- PAN, Photograph, ID Proof - DL/Passport/Voter ID, Address Proof - Telephone/mobile/electricity Bill or Bank Statement ( not more than 30 days Old), Email ID and Mobile no.

Points to Remember while increasing the Authorised Share capital

Check authorisation in AOA for increase in authorised share capital and if there are no provisions for increasing authorised share capital, then first make changes to the AOA of the company.
Generally, an EGM is called for to transact the business of increase in share capital and any other businesses. However, in case an AGM is to be held in the recent future, the Company could take up this matter too under “Special Business” and seek consent of members.
Issue notice in writing at least 21 days before the date of the meeting for the General Meeting with Explanatory Statement as required under Section 102 of the Companies Act 2013. In case shorter period notice is to be given then take approval of at least 95% of shareholders of company.

Procedure of increase of Authorised Share Capital

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Check Article of Association

First of all, check the articles of association of company, whether it contain he provisions for increase in authorised share capital. If AOA does not have such authority then amend the AOA as per the provision of Section 14 of the Companies Act, 2013 after that we can proceed towards the increase in authorise capital.

Call Board Meeting

Call board meeting to discuss and approve the increase in authorised share capital subject to approval of shareholders and also issue notice calling Extra-ordinary General Meeting (EGM).

Call EGM

Call and hold Extra-ordinary General Meeting and pass the resolution for increase in authorised share capital.

Alteration of capital clause in MOA

Alter the capital clause of memorandum of association (MOA) and also put note in MOA that increase in authorised share capital is approved by shareholders in EGM held on so and so date. This page of MOA should be signed by the authorised director and also rubber stamped of company should be affixed.

File form SH 7

Prepare and file Form SH-7 (attach required documents) with Register of Company within 30 days from the date of such alteration and make payment of ROC fee as well as applicable stamp duty.

Approval from ROC

Once Form SH-7 filed with MCA is approved, the changed status of authorised capital of the Company can be checked at MCA site. Here ROC generally check stamp duty and govt fee and legal formality are in order before approve.

How to allot New Share Capital to Existing or new share shareholders?

Pre Allotment Task
Pass Board Resolution and Increase Authorised Capital if needed

Share Application and Allotment money details
Get date wise share application/allotment money paid by shareholder

Prepare Form SH 7
Prepare Form SH 7 and attached List of allottees and other relevant documents.

Submission to ROC
Submit SH 7 form online certified by CA/CMA/CS. Form SH 7 is SFP so not manual approval is required here.

Our Professional Fees & Expenses

Increase of Authorised Share capital For companies Paid up capital upto Rs 50L	3000	Buy
Increase of Authorised Share capital and Allotment of New Shares For companies Paid up capital upto Rs 50L	8000	Buy
Increase of Authorised Share capital and Allotment of New Shares For companies Paid up capital above Rs 50 L	15000	Buy

Note : Govt Fee, Stamp Duty, etc payable as extra as per actual and not included in professional Fee.

How to Proceed?

Frequently Asked Questions

Why company should increase authorised share capital?
- If company needs to infuse further capital which is more than existing authorised share capital then company will have to increase its existing authorised share capital as per further fund requirements.
Can a company increase authorised share capital if there is no provision if AOA for this?
- If AOA of company contains no provision for increase in authorised share capital then first amend AOA and include provisions for increase in authorised share capital and thereafter go for increase in authorised share capital.
What is the fee for increase in authorised share capital?
- Fee varies depending upon the authorised share capital and place of company.
Is it mandatory to file Form MGT-14 for increase in authorised share capital?
- No, it is not mandatory to file Form MGT-14 for increase in authorised share capital. As for this, ordinary resolution is to be passed and file Form SH-7 only.
How to pay Stamp duty on increase in authorised share capital?
- All fee is to be paid online after login on MCA at the time of form filing.

Govt. Fee for Increase of Share Capital

Govt Fee, Stamp duty, Penalty Chart ( Share capital Increase)
Govt Fee, Stamp duty, Penalty Chart ( Share capital Increase)