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Increase Authorized Capital

Alteration of capital, SH-7 and the duty on the increase.

Authorised capital is the ceiling on shares the company may issue. Increasing it needs an articles check, a shareholder resolution, a filing, and stamp duty that depends on the state and the amount of increase. Issuing new shares to an investor is a second step — allotment — and is quoted separately if you need it.

Who this is for

  • Companies preparing for an investment
  • Businesses that have hit the authorised ceiling

Documents usually needed

  • Current MOA capital clause
  • Amount of increase
  • DSC
  • State in which the registered office sits

How Digital Filings handles it

  1. Compute likely stamp duty before you pass the resolution.
  2. Hold the meeting and file.
  3. Confirm the new capital on MCA master data.

Timeline

One to three weeks after duty is paid. Duty assessment can be the slow step in some states.

Questions people ask

Does this allot shares to the investor?

No. This only raises the ceiling. Allotment, share certificates and, if applicable, FC-GPR are separate.

Official reference: MCA. Always confirm the live rule on that portal.

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