Authorised Capital Increase

Overview

Authorised share capital is the maximum amount of share capital a company is authorised to issue under its Memorandum of Association (Clause V). When a company needs to issue new shares beyond the existing authorised limit — for raising investment, issuing ESOPs, converting debt to equity, or issuing bonus shares — it must first increase its authorised capital through an ordinary resolution at a general meeting and filing Form SH-7 with the ROC within 30 days.

Unlike MOA object clause changes (which require a special resolution), authorised capital increase requires only an ordinary resolution (simple majority). The ROC charges a progressive fee on the amount of increase — from Rs.5,000 for the first Rs.1 lakh to Rs.1,000 per Rs.10,000 for amounts above Rs.1 crore. MFiling handles the complete process: board resolution, EGM/AGM notice, shareholder meeting, SH-7 preparation with fee calculation, and ROC filing — typically completing within 5–7 working days.

MFiling professional charges: from Rs.2,999 (professional fees, exclusive of government ROC fees based on capital increase amount).

Key Benefits

Documents Required

How it Works

Frequently Asked Questions