Authorized Capital Increase
MCA
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- Remove Director
- ADT-1 Filing
- DPT-3 Filing
- LLP Form 11 Filing
- Dormant Status Filing
- MOA Amendment
- AOA Amendment
- Authorized Capital Increase
- Share Transfer
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Authorized Capital Increase
Authorized capital refers to the maximum share capital that a company is legally allowed to issue to its shareholders. When a business requires more capital for expansion, investment, or operational needs, it can increase its authorized capital by following the necessary legal process under Section 61 of the Companies Act, 2013.
📌 Applicable to: Private Limited, Public Limited, One Person Company (OPC)
📌 Filing Form: SH-7 (for capital modification)
📌 Regulatory Body: Ministry of Corporate Affairs (MCA)
Importance of Increasing Authorized Capital
✅ Facilitates Business Expansion – Allows companies to raise additional funds
✅ Enables Issuance of More Shares – Supports bringing in new investors & partners
✅ Strengthens Financial Position – Helps improve creditworthiness & financial health
✅ Supports Business Growth – Helps meet increasing capital demands
✅ Ensures Compliance with Regulatory Framework – Legally increases capital structure
how we help
Great Support for Funding & Compliance
Documents Required for Authorized Capital Increase
📌 Board Resolution Copy – Approval for the increase in capital
📌 Shareholders’ Special Resolution – Passed in an extraordinary general meeting (EGM)
📌 Revised Memorandum of Association (MOA) – With the updated capital structure
📌 Filing Form SH-7 – Submitted to MCA along with the prescribed fees
📌 Government Fee Payment Receipt – Proof of payment for capital modification
Benefits of Increasing Authorized Capital
✅ Enables Fundraising – A company can issue additional shares to investors
✅ Enhances Business Flexibility – Provides financial flexibility for future projects
✅ Improves Credibility & Creditworthiness – Strengthens the company’s financial standing
✅ Attracts New Investors – Helps in raising capital through equity investments
✅ Smoothens Mergers & Acquisitions – Helps accommodate ownership restructuring