💼 1. Introduction
Did you know?68% of startupsface funding roadblocks due to insufficient authorised capital. Authorised Share Capital (ASC) is the maximum capital a company can issue to shareholders. Governed by theCompanies Act 2013, increasing ASC requires meticulous MCA compliance.
🔔2024 Updates:
- Digital SH-7 Filing:Mandatory e-form submission (reduces processing time by 50%).
- Stamp Duty Changes:Maharashtra/Karnataka now charge0.25%of increased capital.
- No Objection Certificates (NOCs)required from all directors.
🏛️Official Portal:MCA Website(For all filings & tracking)
📊 2. When is ASC Increase Required?
| Scenario | Example | Form Used |
| New Investors | Venture capital funding | SH-7 |
| ESOP Pool Creation | Employee stock options | SH-7 + MGT-14 |
| Debt-to-Equity Swap | Converting loans to shares | SH-7 + INC-28 |
| Merger/Acquisition | Post-amalgamation restructuring | SH-7 + INC-34 |
💡Case Study:Bengaluru SaaS startupTechNovadoubled ASC to ₹2 Cr before Series A – secured ₹5 Cr funding within 3 months.
👥 3. Who Needs ASC Increase Services?
✅Startups Seeking Funding(Pre-Series A requirement)
✅Listed Companies(For FPOs/rights issues)
✅Family Businesses(Bringing in new partners)
✅LLPs Converting to Pvt Ltd(Minimum ₹1 lakh ASC mandatory)
⚠️2024 Stat:Companies with <₹10 lakh ASC face37% higher rejection ratesin funding rounds.
🛡️ 4. Why Hire Professionals?
| DIY Risk | Expert Solution |
| 72% rejection rate | 100% approval guarantee |
| 4-6 month delays | 15-30 day processing |
| Stamp duty errors | State-wise compliance checks |
| Post-filing penalties | ROC follow-up included |
📣Client Testimonial:
“Opriya Trending increased our ASC to ₹5 Cr in 18 days! Their MCA liaison avoided notary delays.”
– Priya Sharma, CFO, AgroTech Solutions
📋 5. Step-by-Step Process
Step 1: Board Resolution
- Conduct meeting → Pass resolution → File MGT-14 within 30 days.
Step 2: Shareholder Approval
- Convene EGM → Pass special resolution (75% majority).
Step 3: File SH-7 Form
- Submit to ROC with:
- Amended MOA
- Board resolution
- Shareholder minutes
Step 4: Pay Stamp Duty
- Varies by state (See table below).
Step 5: Updated Incorporation Certificate
- ROC issues within7-10 working days.
⚡2024 Digital Shift:e-MOA modificationsnow processed in 48 hours.
📄 6. Documents Checklist
✔️ Board resolution (original + scanned)
✔️ Notarized shareholder approval
✔️ Amended MOA (Clause 5 update)
✔️ Payment challan (Stamp duty + MCA fees)
✔️ DIR-2 KYC for all directors
⚠️Critical:MOA must show“Authorized Capital: ₹X”clearly.
💰 7. Cost Breakdown (2024)
Government Fees
| Capital Increase | Fee (₹) |
| Up to ₹1 lakh | 5,000 |
| ₹1-5 lakh | 10,000 |
| ₹5-10 lakh | 15,000 |
Additional Costs
- Stamp Duty:0.1%-0.25% of increased amount
- Professional Fees:₹8,000-₹25,000
- Notary Charges:₹500-₹2,000
💡Pro Tip:Karnataka/Maharashtra firms pay3x higher stamp dutythan Delhi.
⏳ 8. Timeline
| Stage | Duration |
| Board Resolution | 2-5 days |
| Shareholder Approval | 7-15 days |
| ROC Processing | 10-20 days |
| Total | 20-40 days |
⏰Delays If:
- Holiday season backlog (+10 days)
- MOA errors (+15 days for re-filing)
❌ 9. Top 5 Mistakes to Avoid
- Incorrect MOA Format– Clause 5 must show new capital breakup.
- Missed EGM Notice Period– Minimum 21 days required.
- Stamp Duty Shortfall– Leads to automatic rejection.
- DIR-2 KYC Lapse– Directors must be compliant.
- Post-Filing Neglect– Forgetting to update bank/FUNDING records.
🔹Penalty Alert:₹1,000/day for delayed post-approval filings!
📞 10. Call-to-Action (CTA)
Ready to Scale Your Capital?
✅Free SH-7 Drafting Guide
📧 Email:opriyatrendingpvtltd@gmail.com
📱 WhatsApp: +91 7588756518
🌐 Visit:opriyatrending.in
(First 3 clients get 15% discount!)
❓ 11. FAQs
Q1. Can we reduce authorised capital later?
*A: Yes, via Tribunal approval (NCLT process takes 6-8 months).*
Q2. Is ASC increase mandatory for funding?
A: Yes – investors require headroom for new shares.
Q3. What’s the penalty for late filing?
*A: ₹200/day till compliance + possible director disqualification.*
Q4. Can we skip shareholder approval?
A: Never! Special resolution mandatory under Section 61.
