Increase In Business Capital

Actualise. Share Capital Increase.

*Subject To Change On Market Conditions

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A company may need to increase its authorised share capital before it issues new equity shares to increase the paid-up capital. Authorised share capital refers to the total value of the shares a company is allowed to issue, while paid-up capital is the total value of the shares a company has issued.

Procedure to increase the Authorised Share Capital

01. Verify AOA of the Company::
Verify the provisions regarding increasing the Business capital of the company in the AOA. If there are none, add a provision approving increase in authorised capital.
02. Convene a Board Meeting:
Hold a Board meeting to approve the increase of authorised capital and to convene an EGM with the shareholders for the same.
03. Convene the Extra-Ordinary General Meeting:

Get the approval of majority shareholders in the form of an ordinary resolution in the EGM.

04. File ROC Forms::
  • File form SH-7 within 30 days of passing the ordinary resolution. Along with the Form SH-7, pay the prescribed government fee for authorized capital with documents mentioned below: Notice related to the EGM.
  • Authorized True copy of the Ordinary Resolution.
  • Altered Memorandum of Association. (If a higher authorized capital has been added)
Allotment of Shares by issuing fresh equity shares upon the approval of the form and documentation.

Why should Businesses increase Authorised Capital