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Increase Authorized Share Capital in India

Q: Can authorized capital be increased without altering the AoA?

Yes, authorized capital can be increased without altering the AoA, provided the existing AoA already contains a provision enabling the company to increase its share capital. If not, the AoA must first be altered by passing a special resolution.

Q: In how many days do we have to file Form SH-7 with the ROC?

You have 30 days from the date of passing the Ordinary Resolution in the EGM to file e-Form SH-7 with the Registrar of Companies (ROC).

Q: Does increasing authorized capital also increase paid-up capital?

No, increasing authorized capital does not automatically increase paid-up capital. Increasing authorized capital only raises the maximum limit to which a company can issue shares. Paid-up capital increases only when new shares are issued and paid for by the shareholders.

Q: Is there a maximum limit for authorized capital in a private limited company?

No, there is no specific maximum limit prescribed for authorized capital for a private limited company under the Companies Act, 2013. However, the amount of authorized capital will impact the ROC fees and stamp duty payable.

Q: What is the difference between increasing authorized capital and allotment of shares?

Increasing authorized capital refers to raising the maximum limit of share capital a company is legally permitted to issue. It's an amendment to the company's MoA. Allotment of shares, on the other hand, is the actual process of issuing shares to new or existing shareholders out of the authorized capital. This converts the company's authorized capital into issued and paid-up capital.

Q: What is the Alteration of Share Capital?

Alteration of share capital means changing the total amount of shares a company can issue. This can be an increase or a decrease. The change needs approval from the shareholders and must be updated in the company’s official documents.

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Frequently Asked Questions (FAQs)

What resolution is required to increase authorized share capital?

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An Ordinary Resolution passed in an Extraordinary General Meeting (EGM) of the shareholders is required to increase the authorized share capital.

Can authorized capital be increased without altering the AoA?

In how many days do we have to file Form SH-7 with the ROC?

Does increasing authorized capital also increase paid-up capital?

Is there a maximum limit for authorized capital in a private limited company?

What is the difference between increasing authorized capital and allotment of shares?

What is the Alteration of Share Capital?

Why Choose RegisterKaro for Increasing Your Authorized Share Capital?

Increasing your authorized capital requires careful attention to legal rules and proper documentation. RegisterKaro makes this process easier and efficient. Here’s why you should choose us:

Accurate Documentation: We assist in preparing all necessary documents, such as board resolutions, special or ordinary resolutions, and filing forms like e-Form SH-7 and MGT-14.
Timely Filing: We make sure all forms are filed with the Registrar of Companies (ROC) on time to avoid penalties.
Reliable Support: Our support team is available to answer your questions and assist throughout the process.
Full Compliance: We ensure your company follows all rules under the Companies Act, 2013, helping you avoid fines or legal issues.
Transparent Pricing: Our pricing is clear and upfront, with no surprises or hidden charges.

Why Choose RegisterKaro for Increasing Your Authorized Share Capital?

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