Increase Authorized Share Capital
Your authorised share capital is the ceiling on how much equity your company can issue. Once you cross it, you cannot allot any more shares until you raise the ceiling.
What this filing does
Your authorised share capital is the ceiling on how much equity your company can issue. Once you cross it, you cannot allot any more shares until you raise the ceiling. This typically comes up before a fresh round of investment, ESOP grant, or rights issue.
We draft the EGM notice and the ordinary resolution, file Form SH-7, and pay the State stamp duty on the increase.
Common reasons founders file this
- An investor round is closing soon and the new shares cross your current ceiling.
- You are creating an ESOP pool that needs new authorised capital.
- A rights issue or bonus issue takes the issued capital above the authorised limit.
- You want headroom in advance to avoid blocking a future allotment.
Documents we will need
Most of these you can scan or photograph from your phone. We list everything in your engagement letter so nothing is collected later as a surprise.
- New authorised capital amount you want to set.
- Existing MoA + AoA (we have these on file).
- List of shareholders and their email IDs.
Stage by stage
- 01.
EGM notice & resolution drafted
Day 1–2We draft the EGM notice, the explanatory statement, and the ordinary resolution increasing the authorised capital. The MoA capital clause is amended.
- 02.
EGM held
Day 3–2421 clear days notice (or shorter with consent). The ordinary resolution is passed.
- 03.
SH-7 filed + stamp duty paid
Day 25–28SH-7 is filed within 30 days, signed by a Practising Company Secretary. State stamp duty on the increase (typically 0.1%–0.3% of the increase) is paid through the MCA portal.
- 04.
Acknowledgement
Day 28–32MCA acknowledges the filing. The new authorised capital is recorded against your CIN and shows in your master data.
Our fee — from ₹5,000 + state stamp duty
Excludes the State stamp duty on the increase, which depends on State and amount.
What you receive
- Filed SH-7 with MCA acknowledgement.
- Stamp duty receipt.
- Amended MoA with the new capital clause.
- EGM notice, explanatory statement, and signed resolution on file.
Frequently asked
Is the increase taxed?+
Stamp duty applies, not income tax. The duty is a State levy on the increase amount and varies by State (Maharashtra ≈ 0.2%, some States lower). The MCA filing fee is separate.
Can we increase by any amount?+
Yes — there is no statutory ceiling. But the higher the increase, the higher the stamp duty. Some founders increase in tranches to spread the duty over time.
Does this also issue new shares?+
No. SH-7 only raises the ceiling. Actually issuing shares is a separate step (PAS-3 for allotment, or rights / bonus issue procedures). We can quote that as a separate engagement.
MGT-14 — when is it required?+
Older AoAs often require any capital alteration to be passed as a special resolution and filed via MGT-14. Newer AoAs (Table F default) treat it as an ordinary resolution and don't need MGT-14. We check your AoA at the briefing stage.
Begin your increase authorized share capital.
The online form takes a few minutes. Save and resume anytime. No payment is taken until the full fee, including any pass-through items, has been shown alongside the engagement letter.