CHG-03 · Changes & closure
Increase in Authorised Capital
Raise the ceiling before you issue new shares to an investor.
- Professional fee from
- ₹5,999
- Timeline
- 7–15 working days
- Governed by
- Companies Act, 2013 · s.61 & s.64
Professional fee. MCA fee and state stamp duty on the increase billed at cost.
Best suited to
Companies about to allot shares beyond their current authorised limit
Overview
You cannot issue shares beyond your authorised capital, so this is almost always the first step in a funding round. It requires an alteration to the capital clause of the MOA by ordinary resolution, followed by Form SH-7 within 30 days.
The real cost is stamp duty on the increase, which varies by state and can be significant on a large jump. We calculate it before you decide how much headroom to create.
What is included
- Resolutions and EGM notice drafted
- MOA capital clause altered
- SH-7 filing
- Stamp duty computed and paid
Documents you need
- 01Current MOA and AOA
- 02Board and shareholder resolutions
- 03Notice of the general meeting
- 04Altered capital clause
How the filing runs
- Day 1–3
Approvals
Board resolution, then EGM notice and ordinary resolution.
- Day 4–10
SH-7 filed
Filed within 30 days with fee and stamp duty.
- Day 10–15
Records updated
Updated MOA issued.
Questions about increase in authorised capital
01How much headroom should I create?
Enough for this round plus the ESOP pool and a buffer, because doing it again costs the same fixed fees. But stamp duty scales with the amount, so there is a genuine trade-off. We model both.
Tell us what the business does. We will tell you what it needs.
A 15-minute call with a Chartered Accountant or Company Secretary, at no cost, before you commit to anything.