Increase Authorised Share Capital
A company’s decision to enhance the maximum amount of capital it can issue to its shareholders is referred to as increasing authorized share capital. This is the general procedure
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INTRODUCTION
Know About Increasing Authorised Share Capital
A company’s share capital is the portion of capital it raises through the issue of shares. However, a company can issue shares only up to the limit of its authorised share capital, which is the maximum amount specified in the company’s Memorandum of Association (MoA).If a company needs to raise additional funds by issuing more shares, it must first increase its authorised share capital. This increase can be done at any time after incorporation by following the process prescribed under the Companies Act, 2013, which includes paying the applicable government fee and stamp duty.
Advantage
Benefits of Increasing Authorised Share Capital
Allows Further Issue of Shares
A company can only issue shares up to the limit specified in its Memorandum of Association (MoA). If the company needs to raise more funds in the future, it must first increase its authorised capital. This ensures that there is enough headroom to issue additional shares whenever required.
Improves Borrowing Capacity
A higher authorised capital allows a company to increase its paid-up capital, which directly boosts its net worth. A stronger net worth improves the company’s financial standing and enhances its ability to secure loans or attract investors.
A LIST OF DOCUMENTS
📄 Documents Required to Increase Authorised Capital
✅ Digital Signature Certificate (DSC)
DSC of an authorised director must be provided.
✅ Memorandum & Articles of Association (MoA & AoA)
A copy of the latest MoA and AoA of the company.
✅ Certificate of Incorporation (CoI)
A copy of the company’s Certificate of Incorporation.
✅ PAN Card
A copy of the company’s PAN card.
💼 Types of Share Capital in a Company
Authorised Capital
The maximum amount of share capital that a company is legally allowed to raise as stated in its Memorandum of Association (MoA).
Issued Capital
The portion of authorised capital that is actually offered to investors for subscription.
Subscribed Capital
The part of issued capital that investors have agreed to purchase and pay for.
Paid-up Capital
The amount of subscribed capital that shareholders have paid to the company.
📈 Increase Authorised Share Capital in 3 Easy Steps
✅ Step 1: Quick & Easy Start
Answer simple questions — takes less than 10 minutes
Provide basic details and required documents
Make payment securely through trusted gateways
✅ Step 2: Expert Assistance
Dedicated Relationship Manager assigned
Drafting of Board Resolution and necessary documents
Alteration of MoA & AoA clauses
Preparation & filing of application with MCA
MCA master data updated with new capital details
✅ Step 3: Capital Increased!
Receive updated Certificate of Incorporation
Use your enhanced capital capacity for future growth
⏱️ Timeline: 8–10 working days* (*Subject to government processing time)
🔍 Step-by-Step Process to Increase Authorised Capital
Day 1
✔️ Expert consultation on capital increase
✔️ Collection of required information & documents
Day 2 – 4
✔️ Drafting Board & shareholder resolutions
✔️ Preparation of supporting documents
✔️ Review and signing of documents by directors/shareholders
Day 5 – 6
✔️ Filing application with MCA along with altered MoA & AoA
✔️ Payment of additional stamp duty and fees (if applicable)
Day 7 onwards
✔️ Government processing & approval
✔️ Updated master data of company on MCA portal
Frequently Asked Questions
Have questions before reaching out? Here are quick answers to some of the most common queries we receive about contacting us, consultations, and service inquiries.
To increase the authorised share capital, the company must obtain:
1️⃣ Board of Directors’ approval
2️⃣ Approval of shareholders/members
3️⃣ Final approval from the concerned Registrar of Companies (RoC)
The application must be filed within 30 days of passing the shareholders’ resolution.
Form MGT-14: To notify the resolution passed.
Form SH-7: To intimate the increase in share capital, along with the altered MoA & AoA.
Yes. After approval, the company’s Master Data on the MCA portal will show the updated authorised and paid-up capital.
Yes. The government filing fee for forms submitted to the MCA is linked to the company’s authorised capital. When the authorised capital increases, the fee may increase slightly too.
Yes. The service package includes updating the paid-up capital if needed (except for any share transfers between shareholders).