What is Authorized Capital?
Authorized Capital (also called Nominal Capital) is the maximum amount of share capital that a company can issue to shareholders. It is mentioned in the Memorandum of Association (MOA).
When you need to issue more shares beyond the current authorized limit (for raising investment, allotting ESOPs, etc.), you must first increase the authorized capital.
When to Increase Capital?
Raising Investment
Issuing new shares to investors requires sufficient authorized capital.
ESOPs
Allocating shares to employees under stock option plans.
Convertible Notes
Converting debt instruments into equity shares.
Business Expansion
Infusing more capital for growth and expansion.
Process
Board Meeting
Pass board resolution to increase authorized capital.
Shareholders Meeting
Pass ordinary resolution in General Meeting (EGM/AGM).
File SH-7
File Form SH-7 with ROC within 30 days of resolution.
Updated MOA
Receive updated MOA reflecting new authorized capital.
Our Pricing
Increase Capital
+ Govt. Fees (varies by amount)
- Board Resolution
- GM Resolution
- SH-7 Filing
- Updated MOA
- Expert Support
Government stamp duty varies by state and amount of increase. We'll calculate exact fees after consultation.