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Increase Authorised Capital

Raising a round or issuing ESOPs? Lift the capital ceiling first — EGM, altered MoA and SH-7, done before the term sheet needs it.

Starts at ₹4,999 + government fees, if any

1–2 weeks100% onlineDedicated professional

What is Increase Authorised Capital?

Authorised capital is the ceiling on shares your company may issue; funding rounds, ESOP pools and bonus issues routinely need it raised. The sequence: board meeting, EGM ordinary resolution, altered MoA capital clause, and Form SH-7 within 30 days — with MCA fees and state stamp duty scaled to the increase.

Timing matters in a live round: allotment (PAS-3) cannot exceed the authorised ceiling, so SH-7 must clear first. We size the increase sensibly (fees scale, so gross over-provisioning wastes money; under-provisioning repeats the exercise next round) and coordinate with the allotment paperwork so closing doesn’t wait on the ROC.

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Reviewed by Vijay DhawanManaging Partner, LexVerge LLP · reviewed for accuracy under the Companies Act, 2013 and current MCA/GST/Income-tax rules
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