Increase Authorized Capital
Following the steps outlined in company law, a corporation can increase its authorised capital. It entails shareholders passing necessary resolutions and filing documentation with the ROC.
The ROC’s registration fee is determined by the company’s authorised capital. As a result, the ROC must be paid the difference fee each time allowed capital is increased. In India, stamp duty on permitted capital is required in several states. As a result, corporations must pay the requisite stamp duty when expanding their authorised capital in such states.
The company’s MOA must be amended to enhance allowed capital. In some circumstances, the allowed capital clause is included in the company’s Articles of Association (AOA). In such instances, any increase in capital necessitates a change to the relevant clause in the AOA.
Register a Company in 4 Easy Steps
Board of Directors Resolution
The Company must first hold a Board meeting to review and discuss whether or whether the authority granted in the Company's Articles of Association (AOA) allows for an increase in the authorized capital. If the answer is no, change the AOA and hold a general meeting to increase the authorized capital.
Ordinary Resolution for Authorized Capital Increase
The Company will hold a General Meeting of Members and approve an ordinary resolution increasing the company's authorized capital and making corresponding amendments to the Memorandum of Association at that meeting.
Forms to be filled out
The company will file forms MGT-14 for filing resolutions and Form SH-7 together with appropriate documentation for increase in authorized capital with the Registrar of Companies (ROC) through the MCA portal after the Ordinary Resolution for increase in authorized capital of the business is passed.
The ROC has been approved
The Registrar of Companies will process the forms and approve the increase in authorized capital after receiving the Forms of Increase in Authorized Capital of the Company. If the Registrar of Companies is satisfied with the forms filed and compliance made, he will process the forms and approve the increase in authorized capital. The Company's Master Data will be updated on the MCA site once the form is authorized.
Documents Required for Increase Authorized Capital
- A copy of a digital signature certificate (DSC) from any of the company’s authorized directors.
- A copy of the amended or most recent version of the Memorandum of Association (MoA).
- Articles of Association (AoA): A copy of the most recent or amended version of the AoA is required.
- The certificate of incorporation is a copy of the company’s certificate of incorporation.
- PAN card: A duplicate of the business’s PAN card.
Checklist For Increasing Authorized Capital
- To raise authorized share capital, check the provisions of the AoA.
- If the AoA does not allow for an increase, it must be changed in accordance with Section 14 of the Companies Act of 2013.
- To approve the increase in authorized share capital, issue a notice for a board meeting to amend the AoA.
- Call an extraordinary general meeting to amend the Articles of Association in order to approve the increase in authorized share capital.
- Give notice at least seven days before the board meeting and at least twenty-one days before the EGM.
OUR PRICING PLANS
Standard
₹ 14,999
- complete company incorporation
- Certificate of incorporation (COI)
- Permanent account number (PAN)
- tax deduction account number (TAN)
- director identification number (DIN)
- digital signature certificate (DSC)
- memorandum of association (MOA)
Gold
₹ 16,999
- complete company incorporation
- Certificate of incorporation (COI)
- Permanent account number (PAN)
- tax deduction account number (TAN)
- director identification number (DIN)
- digital signature certificate (DSC)
- memorandum of association (MOA)
- articles of association (AOA)
- Bank account opening
- GST registration
- MSME / UDYAM registration
Platinum
₹ 19,999
- complete company incorporation
- Certificate of incorporation (COI)
- Permanent account number (PAN)
- tax deduction account number (TAN)
- director identification number (DIN)
- digital signature certificate (DSC)
- memorandum of association (MOA)
- articles of association (AOA)
- Bank account opening
- GST registration
- MSME / UDYAM registration
- Share certificate issue
- company commencement form filling