Increase in Authorised Share Capital
Corporate Compliance
Increase in Authorised Share Capital
Authorised share capital is the ceiling on the shares a company can issue. In short, it sets the maximum limit written in your MOA. However, when you want to raise more funds, you must lift this ceiling first. Therefore, Prospect Legal handles the whole increase for you. As a result, your company can issue new shares without any legal hurdle.
30 Days
SH-7 Filing
MOA
Amendment
Board & Members
Approvals
End-to-End
Resolution to ROC
Raise Your Capital Ceiling
What is authorised capital, and why increase it?
Authorised capital is the highest amount of share capital a company may issue. Simply put, it is the limit set in your Memorandum of Association. Therefore, you cannot issue shares beyond it. Above all, raising it is the first step before bringing in new funds.
Companies increase it for clear reasons. First, they need room to issue fresh shares to investors. Next, growth and new partners often demand more capital. Also, the change needs member approval and an ROC filing. Because the steps are formal, expert handling avoids errors.
Documents required to increase authorised capital
You need only a few papers to start. Also, our team checks each one before filing. As a result, the change goes through cleanly. Here is the full list:
- Current Memorandum and Articles of Association
- The board resolution proposing the increase
- Notice of the general meeting
- The ordinary resolution passed by members
- Details of the new capital structure
- A signed authority letting us file for you
How increasing authorised capital works — step by step
The process is simple when an expert guides you. Moreover, Prospect Legal handles every step on your behalf. Here is how it works:
Step 1 — Check the Articles
First, we confirm your AOA allows the increase. Because this can need a change too, it comes first.
Step 2 — Board and member approval
Next, we prepare the board resolution and the members’ ordinary resolution. Therefore, the approvals are in order.
Step 3 — File SH-7 with the ROC
Then, we file Form SH-7 with the updated MOA and fee. In addition, we pay the correct stamp duty.
Step 4 — Update your records
Finally, we update the MOA and registers. After that, you can issue the new shares.
Why choose Prospect Legal for increasing authorised capital?
A missed step or a wrong fee can delay your funding. However, correct filing keeps it smooth. Here is what sets us apart:
- Articles check. Because we review your AOA first, there are no surprises.
- Correct resolutions. Also, we draft the board and member approvals right.
- Accurate SH-7. Next, we file with the correct fee and stamp duty.
- Updated records. Moreover, we revise your MOA and registers.
- Real support. Above all, you can reach a human on call or WhatsApp anytime.
Increase in authorised capital — what’s included
| Service | What we do | Benefit to you |
|---|---|---|
| Articles Review | Check your AOA clause | A clear path |
| Resolutions | Draft board and member approvals | Valid decisions |
| SH-7 Filing | File with the ROC | Legal increase |
| Fee & Stamp Duty | Pay the correct charges | No rejection |
| MOA Update | Revise the capital clause | Accurate charter |
| Records Update | Refresh the registers | Ready to issue |
Related corporate compliance services
After raising the ceiling, you may issue or restructure shares. Therefore, explore these services next:
Frequently asked questions about increasing authorised capital
Why increase authorised capital?
You increase it to make room for issuing new shares. Also, it is needed before raising fresh funds. Therefore, it is a first step for growth. We handle the whole change for you.
Do members need to approve it?
Yes, members approve the increase by an ordinary resolution. Also, the board proposes it first. Therefore, we prepare both approvals. We keep the timeline clear.
What is Form SH-7?
SH-7 is the ROC form that records the capital increase. Also, it carries the updated MOA and fee. Therefore, we file it within the due window. We share the receipt.
Is stamp duty payable?
Yes, stamp duty applies on the increased capital and varies by state. Also, the ROC fee applies too. Therefore, we compute both correctly. We pay them for you.
How long does it take?
It usually takes a week or two once approvals are ready. Also, the AOA check comes first. Therefore, early papers speed it up. We keep you posted.
Raise your authorised capital the right way
Talk to Prospect Legal today. We handle the resolutions, SH-7 filing, and MOA update so your company can issue new shares without delay.
