Increase in Authorised Capital
Room to issue the shares you are about to issue.
A company cannot issue shares beyond its authorised capital, so a round that exceeds it has to be preceded by an increase. It needs an ordinary resolution and SH-7 filed within thirty days.
Check the articles first — if they do not permit an increase, they have to be altered by special resolution before the ordinary one is any use.
The government fee and stamp duty both scale with the amount and stamp duty varies by state, so the total cost depends on where the registered office is.
What is included
- Articles reviewed and altered if they restrict the increase
- Board and general meeting resolutions
- SH-7 filed with the amended MOA
- Stamp duty computed at the correct state rate
What we need from you
- Existing MOA and AOA
- Board and member resolutions
- Notice of the general meeting
- Digital signature of a director
Questions
What is the difference between authorised and paid-up capital?
Authorised capital is the ceiling on what the company may issue; paid-up is what shareholders have actually paid for. You only pay fees on the authorised amount, and you cannot issue past it.
Also in MCA & ROC
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Get started with Increase in Authorised Capital
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