Bhargav Rajurkar & Co.Practising Company Secretaries
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What this filing does

Increase Authorized Share Capital

The authorised share capital is the ceiling on how much equity a company is allowed to issue. Once that ceiling is reached, no more shares can be issued until the ceiling itself is raised.

Delivery5–7 working daysFormsSH-7·MGT-14 (if applicable)
Overview

What this filing does

The authorised share capital is the ceiling on how much equity a company is allowed to issue. Once that ceiling is reached, no more shares can be issued until the ceiling itself is raised. This usually comes up just before a new investment round, an employee stock plan (ESOPs), or a rights or bonus issue of shares.

The shareholder-meeting notice and the ordinary resolution are drafted, the capital-increase filing is submitted to the Registrar within 30 days, and the state stamp duty on the increase is paid.

When you need this

Common reasons founders engage this

  • An investor round is closing soon and the new shares would cross the current ceiling.
  • An ESOP pool is being created that needs new authorised capital.
  • A rights issue or bonus issue would take the issued capital above the authorised limit.
  • Headroom is being created in advance to avoid blocking a future share issuance.
From your side

Documents you will need to send

Most of these can be scanned or photographed from your phone. Everything required is listed in the checklist sent the same day, so nothing is collected later as a surprise.

  • The new authorised capital amount you want to set.
  • The existing founding documents (Memorandum and Articles) — already on file if the company was incorporated through us.
  • List of shareholders and their email addresses.
Step by step

How it works

  1. 01.

    Notice and resolution drafted

    Day 1–2

    The shareholder-meeting notice, the explanation that goes alongside it, and the ordinary resolution to increase the authorised capital are drafted. The capital clause in the Memorandum is amended.

  2. 02.

    Shareholder meeting held

    Day 3–24

    21 clear days' notice is sent (a shorter notice is possible if every shareholder consents). The ordinary resolution is passed by a simple majority of the votes cast.

  3. 03.

    Filed with the Registrar, stamp duty paid

    Day 25–28

    The capital-increase filing (Form SH-7) is submitted to the Registrar within 30 days, signed by a Practising Company Secretary. State stamp duty on the increase (typically 0.1–0.3% of the increase amount) is paid through the Ministry's portal.

  4. 04.

    Acknowledgement

    Day 28–32

    The Registrar acknowledges the filing. The new authorised capital is recorded against the company's identity number and shows up in the Ministry's master data.

What it costs

Our fee

Professional fee

₹8,000

Standard fee. State stamp duty on the increase is extra. Your exact all-in number appears in the online form before any payment is taken.

At the end

What you receive

  • Filed capital-increase form with the Registrar's acknowledgement.
  • Stamp duty receipt.
  • Amended Memorandum with the new capital clause.
  • Shareholder-meeting notice, explanation, and signed resolution on file.
Start Capital-Increase Filing
  1. i.

    Fill the online form

    Save and resume anytime. No pressure to finish in one sitting.

  2. ii.

    Review the scope and fee

    The exact all-in fee, the timeline, and what's included appear together before any payment.

  3. iii.

    Filing begins

    Your dashboard tracks every step. Every form is signed and certified by a Practising Company Secretary.