When Changes Required

There are multiple reasons a firm can decide to change its registered office. Stakeholders and the committee of directors have the power to choose the area of the registered office.

The only explanation required is their satisfaction. Although, in some scenarios, a need occurs to shift the registered department area from one place to another.

Firms are expected to shift their registered office address when it is growing at a rapid pace and the office area and infrastructure does not suit the company’s present location.
If the Firm is in the final months of its lease or rent and they are planning to rent another office at the lease in a better locality.
If a firm is planning to expand its business for employment development and hence planning to change its registered office to an area where it can examine the required possibility
If another firm is buying out your firm, the enrolled office address will be bound to change.

Increase Your Company’s Authorised Capital – Power Your Business Growth!

Legal Filing with ROC | Expert Support | Faster Processing | 100% Online

Why Update Your Authorised Capital?

Raise Funds Through Equity or Investors
Expand Business Operations & Investments
Mandatory ROC Filing & MOA Alteration
Compliant with Companies Act, 2013
End-to-End Legal Assistance from Professionals

Increase In Authorised Capital

Benefits of IncreasingAuthorised Capital

Facilitates Fundraising

An increased authorised capital allows the company to issue more shares and raise funds from investors or shareholders.

Supports Business Expansion

Enables the company to scale operations, invest in new projects, and grow without legal capital limitations.

Improves Creditworthiness

Higher authorised capital improves the company’s financial image, making it more attractive to banks, investors, and partners.

Enables Issuance of Bonus Shares

A higher capital base allows the company to issue bonus shares to existing shareholders without fresh inflow of funds.

Prepares for Future Equity Dilution

Offers flexibility to bring in new investors or partners without going through another capital alteration process.

Ensures Compliance and Avoids Penalties

Staying within the current authorised capital limit ensures legal compliance and avoids penalties when raising new capital.

Why IncreaseAuthorised Capital?

An increase in authorised capital allows a company to issue more shares and raise equity from investors or shareholders.

Startups and growing businesses often need to issue shares to new investors, which requires a higher authorised capital limit.

Issuing shares beyond the existing authorised capital is not legally permissible. Increasing the capital ensures compliance with the Companies Act, 2013.

Companies planning to reward shareholders with bonus shares or offer rights issues must ensure they have sufficient authorised capital.

DocumentRequired

Board Resolution

A certified copy of the Board Resolution approving the proposal to increase authorised share capital.

Notice of Extraordinary General Meeting (EGM)

Notice sent to shareholders to convene an EGM for passing the resolution to increase capital.

Shareholders’ Approval (Ordinary Resolution)

Copy of the Ordinary Resolution passed by shareholders at the EGM authorizing the increase.

Altered Memorandum of Association (MOA)

Updated Clause V (Capital Clause) of the MOA reflecting the revised authorised capital.

Altered Articles of Association (AOA) (if required)

If the AOA restricts capital increase, it must be amended accordingly.

Form SH-7

Duly filed with the Registrar of Companies (ROC) along with prescribed government fee and attachments.

If applicable, a copy of the rental agreement or lease deed between the company and the owner.

Digital Signature Certificate (DSC)

DSC of the authorised director or professional for filing ROC forms.

Process To Follow For Registration

Increasing your company’s authorised capital is a straightforward and hassle-free process. Just follow these four simple steps to expand your capital limit, strengthen your financial capacity, and enable your business to take on larger opportunities with confidence.

1. Start Application

Share basic info about your business.

2. Add Documents

Attach ID, address, and business proof.

3. Verify and Approve

We check everything before submission.

4. Launch with License

Get your certificate and start operations.

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Frequently asked Questions

What is Authorised Capital?

Authorised capital is the maximum amount of share capital that a company is legally allowed to issue to its shareholders, as defined in its Memorandum of Association (MOA).

When should a company increase its authorised capital?

A company should increase its authorised capital when it plans to:
• Issue new shares to investors or partners
• Raise additional equity capital
• Issue bonus or rights shares
• Comply with funding or business expansion needs

Is shareholder approval required to increase authorised capital?

Yes. The company must pass an ordinary resolution in a duly convened Extraordinary General Meeting (EGM) of shareholders.

What are the key steps involved in increasing authorised capital?

• Hold a board meeting to propose the increase
• Send EGM notice to shareholders
• Conduct EGM and pass a resolution
• Alter the MOA (and AOA, if needed)
• File Form SH-7 with the Registrar of Companies (ROC)

Which ROC form is required to increase authorised capital?

The company must file Form SH-7 along with the prescribed fee and supporting documents with the ROC.

. How long does it take to increase authorised capital?

The entire process usually takes 4–6 working days, depending on the preparation of documents and ROC processing time.

Can authorised capital be increased multiple times?

Yes. A company can increase its authorised capital any number of times, subject to shareholder approval and ROC compliance.

Is there a government fee involved?

Yes. The government fee varies based on the amount of increase and is calculated as per authorised capital slabs defined by the MCA.