Increase Authorised Share Capital

Increase company’s fund raising capacity easily

Know about an increase in Authorized Share Capital

The share capital is part of company’s capital which is raised through issue of shares. A company may raise capital only to the extent of the authorized capital mentioned in the company. To increase the capital raising capacity, the authorized capital can also be increased any time after incorporation by payment of additional fee and stamp duty.

A company can issues shares only to the extent of authorized capital. Hence, it determines the number of shares a company can issue which is mentioned in the Capital Clause of MoA. In order to increase capital raising capacity, it has to increase the authorized capital first. To alter authorized capital clause, the company need to conduct a meeting of Board and Member that is followed by application to MCA.

Benefits of increasing authorised capital

Allow further issue of capital
As said, the company cannot raise capital beyond the amount prescribed in the MoA. Therefore, if the need arises to increase the paid-up capital, first authorized capital must be increased.
Increase in borrowing capacity
Increase in internal funding capacity supports the borrowing capacity of the company. Higher the capital, higher the net worth and so the borrowing capacity.

Documents required to increase authorised capital

Digital Signature Certificate
DSC of one of authorised director to be provided
MoA & AoA
A copy of latest amended MoA and AoA of the company
Certificate of Incorporation of company to be provided
PAN Card
Copy of PAN card of the company to be provided

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Types of Share Capital in Companies

Authorised capital
It is the maximum amount of capital a company may raise

Issued Capital
It is that part of authorised capital, which is issued to raise capital

Subscribed Capital
It is that part of issued capital, which is subscribed to be paid by the shareholders

Paid-up Capital
It is that part of capital, which is subscribed and paid to company by the shareholders

Increase capital in 3 easy steps

  • Fill in our questionnaires that take less than 10 minutes
  • Provide basic details & documents
  • Make payment through secured payment gateways
  • Assigned Relationship Manager
  • Drafting of necessary resolution and documents
  • Alteration of MoA and AoA
  • Filing application increase in capital
  • Alteration of MoA and AoA
  • Updated MCA master data with modified details

All it takes is 8-10 working days*

*Subject to Government Processing Time

Process of authorised share capital increase

  • Consultancy for increase in capital
  • Drafting of necessary resolutions
  • Drafting of other necessary documents
  • Provide documents prepared after signature
  • Preparation of application for change
  • Filing application and necessary documents with MCA
  • Government processing time
  • Update master data of the company
Explore increase of authorised capital

Frequently Asked Questions

Which approvals are required for increase in share capital of Private Limited Company?
The increase in capital shall receive following consent or approval:
1. Consent from the Board;
2. Consent from the members of the company; and
3. Approval from concerned RoC.
When should the forms be filed with MCA?
The form must be filed within 30 days after obtaining consent from shareholders for the share capital increase. The resolution passed is notified in MGT-14 and notice of increase is filed in SH-7 with altered MoA and AoA.
Whether increase of capital is reflected on MCA portal?
Yes, the total authorized and paid-up capital is displayed on the Master Data of the company on the MCA portal.
How does the increase in capital impact the company in filing fee?
The Government fee for any e-form filed with MCA depends on the authorized capital of the company. With the increase in Authorised capital, the Government fee for online filing also increases, however to a nominal extent.
Whether package includes increase in paid-up share capital, too?
Yes, the package cost also includes the increase in paid-up capital of the company, but not the transfer of shares.

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