Authorized Capital Increase
Expand Your Company’s Fund-Raising Capacity with Full MCA Compliance
As businesses grow, additional capital is often required to fund expansion, onboard new shareholders, or issue fresh shares. For a Private Limited Company, this is done by increasing the Authorised Share Capital as per the Companies Act, 2013.
At Thrive Tax Solutions, we provide end-to-end support for authorised capital increase, ensuring smooth documentation, timely ROC filing, and complete legal compliance.
📘 What is Authorised Capital?
Authorised Capital is the maximum share capital a company is legally permitted to issue, as stated in its Memorandum of Association (MOA).
A company cannot issue shares beyond this limit unless the authorised capital is increased.
📝 When is Authorised Capital Increase Required?
- Issuing new shares to existing or new shareholders
- Business expansion or funding requirements
- Bringing in investors
- Conversion of debt into equity
- Mergers, acquisitions, or restructuring
🔁 Procedure for Increasing Authorised Capital
- Check Articles of Association (AOA)
– Ensure AOA allows capital increase (amend if required) - Board Meeting
– Approve proposal and call EGM - Extraordinary General Meeting (EGM)
– Pass Ordinary Resolution - ROC Filing
- File Form SH-7 within 30 days
- Update MOA (Capital Clause)
📂 Documents Required
- Altered MOA (Capital Clause)
- Board & Shareholder Resolution
- Updated AOA (if applicable)
- Form SH-7
⏰ Due Date & Penalty
- Form SH-7 Due Date: Within 30 days of resolution
- Late Fee: ₹1,000 per day
- Maximum Penalty: Up to ₹25 lakhs
🛠 Our Services Include
- Review of MOA & AOA
- Drafting resolutions & notices
- Filing Form SH-7 with ROC
- MOA update & compliance confirmation
- End-to-end MCA coordination
⭐ Why Choose Thrive Tax Solutions?
- ✔ Expert ROC & corporate compliance support
- ✔ Accurate documentation & filings
- ✔ Timely execution to avoid penalties
- ✔ Transparent & reliable service