Increase Authorised Capital explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
To issue more shares than its current limit, a company must first increase its authorised capital by altering the MOA and filing with the RoC.
Process
- Check the AOA permits an increase (alter it first if not)
- Pass a board resolution and then an ordinary resolution at a general meeting
- Alter the capital clause of the MOA
- File Form SH-7 with the RoC within 30 days, with stamp duty on the increase
Documents
- Altered MOA
- Board and members' resolutions
- SH-7 with fees and stamp duty
Note
Increasing authorised capital raises the ceiling; you then issue and allot shares (PAS-3) to increase paid-up capital.
Frequently Asked Questions
How do I increase authorised capital?
Pass an ordinary resolution, alter the MOA capital clause and file SH-7 within 30 days with stamp duty.
What form is filed to increase authorised capital?
Form SH-7.
Is stamp duty payable on increasing capital?
Yes — stamp duty applies on the increased authorised capital.
Does increasing authorised capital increase paid-up capital?
No — you then allot shares (PAS-3) to increase paid-up capital.
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