🧾 1. Introduction
Every company in India starts with a predefined authorized capital, which sets the limit on how much share capital it can issue. However, as businesses grow, they often need to increase their authorized capital to raise additional funds, attract investors, or expand operations.
This process must comply with the Companies Act, 2013 and is governed by the Ministry of Corporate Affairs (MCA).
🌐 Official Website for Filing: www.mca.gov.in 🏛️
🧩 2. Types of Capital Changes
While this post focuses on increasing authorized capital, it’s important to know other capital-related actions:
- 📈 Increase in Authorized Capital
- 💸 Increase in Paid-up Capital
- 🔁 Conversion of Share Capital (equity ↔ preference)
- 🧾 Reclassification of Share Capital
Note: Only authorized capital increase allows companies to raise additional equity.
👥 3. Who Needs These Services?
- 📊 Startups scaling operations
- 🏭 SMEs planning business expansion
- 💼 Companies onboarding investors or issuing ESOPs
- 📉 Entities with exhausted authorized capital but needing more equity
🎯 4. Why Choose a Professional Registration Service?
Here’s why expert assistance is essential:
- ✍️ Draft accurate resolutions and MOA amendments
- 🔍 Comply with Section 61 of Companies Act
- 📥 Error-free MCA filings (Form SH-7)
- ⏱️ Save time and avoid penalties
- 📊 Ensure accurate capital structure representation
🛠️ 5. Step-by-Step Process to Increase Authorized Capital
Step 1: Check AoA
Ensure the company’s Articles of Association allow for increasing capital. If not, pass a special resolution to amend it.
Step 2: Hold Board Meeting
📋 Board of Directors must approve the proposal and call for an Extraordinary General Meeting (EGM).
Step 3: Send Notice to Shareholders
At least 21 days’ notice must be sent for the EGM.
Step 4: Hold EGM & Pass Ordinary Resolution
Get shareholder approval to increase the authorized share capital.
Step 5: File MCA Forms
📝 File Form SH-7 within 30 days of passing the resolution.
Step 6: Registrar Approval
ROC will verify and approve. Company’s capital structure gets updated.
📑 6. Required Documents
- 🧾 Board Resolution
- 🧑⚖️ Shareholder Resolution (Ordinary)
- 📜 Amended MOA (Memorandum of Association)
- 🧩 Digital Signature Certificate (DSC)
- 📄 Form SH-7 (with prescribed fee)
💰 7. Cost Involved
| Description | Cost Range (₹) |
| Government Fees (based on slab) | ₹5,000 – ₹1,00,000+ |
| Digital Signature (if needed) | ₹500 – ₹1,000 |
| Professional Fee (optional) | ₹1,000 – ₹5,000 |
Govt. fee is slab-based: ₹5L capital = ₹1,000 approx.
⏱️ 8. Time Taken
| Task | Timeline |
| Board Resolution | 1 Day |
| EGM Notice & Meeting | 2–3 Days |
| Filing SH-7 | Same Day |
| MCA Approval | 3–7 Days |
⚠️ 9. Common Mistakes to Avoid
- ❌ Not checking AoA permissions
- ❌ Missing 30-day deadline for SH-7 filing
- ❌ Errors in MOA Clause V updates
- ❌ No digital signatures or incorrect DSC
- ❌ Not maintaining board/shareholder resolutions
📣 10. Call-to-Action (CTA)
Need to increase your company’s authorized capital without any hassle?
📧 Email: opriyatrendingpvtltd@gmail.com
📲 WhatsApp: +91 75887 56518
🌐 Visit: opriyatrending.in
🧑💼 We draft, file, and manage everything – 100% MCA Compliance guaranteed!
❓ 11. FAQs
Q1. Is it mandatory to hold a shareholder meeting?
Yes. An Ordinary Resolution must be passed at the General Meeting.
Q2. Is Form SH-7 required for increasing paid-up capital?
No. SH-7 is only for increasing authorized capital.
Q3. Can authorized capital be increased multiple times?
Yes. There is no legal limit on how many times a company can do this.
Q4. What if Form SH-7 is filed late?
Penalty of ₹100/day with no maximum cap until filed.
