Online Increase In Authorised Capital in India

Now Increase In Authorised Share Capital at Just Rs. 6000* ( Terms & Conditions apply )

    Board Meeting
    EGM for authorized capital
    Eforms SH-7 (Increase in Authorised Capital) and MGT-14 (Special Resolution) to ROC
    PAS-3 (Allotment of Shares) and MGT-14 (Special Resolution) to ROC
    Drafting of Shareholders Agreement
Home Increase In Authorised Share Capital

Increase In Authorised Capital

When a Company wants to expand its business or to maintain financial decorum it can Increase it's Authorized share capital as required.The authorized capital of a Company determines the number of shares that a Company may issue to its shareholders.

Definition of Authorized Capital: As per Section 2(8) of the Companies Act,2013 means such capital as is authorized by the Memorandum of a Company to be the maximum amount of share capital of the company.

As per Section 61(1)(a) of the Companies Act,2013 a limited company having share capital may, if authorized by its Article can increase its authorize share capital by such amount as it may think beneficial. The V clause of the Memorandum of Article contains the details about the Authorized Capital of the Company, which after increase in capital will change accordingly.


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Procedure for Increase in Authorised share Capital


Step 1: Authorization of Article of Association :

The company has to ensure that the Articles of the Company contains the provisions for authorizing it to increase in Authorized Share Capital, if there is no such provision then Company has to first alter it Article of Association (AOA). To alter the AOA the Company shall pass a Special Resolution. Otherwise the Company will pass Ordinary resolution


Step 2: Convene of Board Meeting

First Issue a Notice of Board Meeting. Hold the Board meeting and approve the following :

1 : To deicide about the increase in authorized capital of the Company

2 : Fix a day, date, time and venue for holding of General meeting of the Company to pass special resolution/ ordinary resolution as per the case.

3 : Approve the notice, agenda and explanatory statement of the special resolution

4 : Authorize a Director or Company Secretary to issue notice of EOGM


Step 3: Holding of Extra Ordinary General Meeting :

Hold the General Meeting and pass special resolution for increasing the authorized share capital of the Company.


Step 4: ROC Filing and Compliance :

1 : File Form SH-7 with Registrar of Companies within 30 days of passing the resolution

2 : Alter the Memorandum of Association


Docsplanner will help you to increase the Authorized Capital of the Company Easily.