Increase Authorised Share Capital
- Want to increase your company’s Authorised Share Capital? Nimble Trio’s experts will handle all your compliances and documentation smoothly.
- Package includes alteration of AOA, MOA, drafting of resolutions, & filing of forms with ROC.
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Here’s How It Works
Want to alter your business objectives while updating your Authorised Share Capital? Let Nimble Trio handle everything for you!
1
Connect with a Nimble Trio expert
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Get all your queries Resolved
3
Provide the required documents
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MoA and AoA will be drafted
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Registrar will be notified about the new capital
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Nimble Trio has been our legal service provider for quite a long time! Our experience with them has been great, especially the speed and proficiency with which they deliver their services. We recommend them!
Nimble Trio is exactly what it does. Legal is simple. We went to Nimble Trio to register our Trademark during the lockdown and everything was done online with ease. We never even had to step out of the house. It was truly a digital experience.
Here’s What You’ll Need
Once you have the following documents prepared, you can submit them online to increase your company’s authorised share capital. Nimble Trio follows advanced security measures and industry-standard protocols to ensure your documents remain completely safe and confidential.
- Certified true copy of ordinary resolution to increase the authorised share capital
- Copy of altered MoA
- Copy of altered AoA
- A copy of the company’s incorporation certificate
- A copy of the company’s PAN card
- DSC copy of any authorised director of the company
Why Should I Use NImble Trio to Raise Authorised Share Capital?
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A strategic business plan that evolves as your business grows. Raise your company’s authorised share capital without breaking into a sweat with the help of the experts at Nimble Trio !
Did you know ?
A limited company having share capital can, under Section 61 of the Companies Act, 2013, modify the capital clause of its Memorandum of Association (MOA) by passing an ordinary resolution in a general meeting, provided its Articles of Association (AOA) permit such alteration.
After the resolution is passed, a notice of alteration of authorised share capital must be filed with the Registrar of Companies (ROC) in Form No. SH-7 within 30 days of the modification.
An Overview on Raising Authorised Share Capital of a Company
The authorised share capital determines the maximum number of shares that a private company can issue. As per the Companies Act, 2013, there is no minimum capital requirement for company incorporation.
Many startups and small businesses today operate with limited funds, making it impractical to allocate large amounts toward increasing their authorised capital during incorporation. However, as the company grows, it may become necessary to raise the authorised share capital to issue additional shares and meet future funding requirements.
To increase the authorised capital, the capital clause of the Memorandum of Association (MOA) must be amended by passing an ordinary resolution at a board or general meeting.
Benefit of Raising Authorised Share Capital
A company can raise any amount of authorised capital it wants, and the MoA will reflect this with changes. As a result, raising authorised capital has a cumulative effect on the overall funding capacity of the company
The company’s overall net worth grows in tandem with the rise in share capital. This increases the company’s borrowing capability even further.
Increasing authorised capital has a cumulative effect on the total share capital of the firm. In fact, a company’s net worth can be jacked up by merely increasing authorised share capital.
Checklist to Raise Authorised Share
- Check the AoA for a provision to enhance the approved share capital
- If the AoA does not allow for an increase, it must be changed in accordance with Section 14 of the Companies Act of 2013
- To approve the increase in authorised share capital, issue a notice for a board meeting to amend the AoA
- Call an extraordinary general meeting to amend the articles of association in order to approve the increase in authorised share capital
- Give notification at least seven days before the board meeting and at least 21 days before the EGM.
How to Raise Authorised Share Capital with Nimble Trio
To raise authorised share capital in India, gather all of the above documents and follow the steps below:
Step 1: Check the Company’s Articles of Association (AoA)
Before starting the process of increasing the authorised share capital, review the company’s Articles of Association (AoA) to ensure that a clause allowing for such an increase is present. If the provision is missing, the company must first amend its AoA accordingly. If you’re unsure whether your company can raise its authorised share capital without altering the AoA, don’t worry — the Nimble Trio team will manage the process for you right from the first step.
Step 2: Hold a Board Meeting
A board meeting must be called by issuing a notice to all directors in order to propose an increase in the company’s authorised share capital. During this meeting, the board of directors’ approval must be obtained for the proposed increase. After the board’s consent, a date should be set for an Extraordinary General Meeting (EGM) to obtain approval from the shareholders for the increase in authorised capital and to make necessary amendments to the Memorandum of Association (MOA). Finally, ensure that the company secretary and directors approve the draft notice of the EGM, which must then be circulated to all shareholders, directors, and auditors.
Step 3: Secure Shareholders’ Approval in the EGM
Hold the Extraordinary General Meeting at the date, time, and venue mentioned in the notice to gain shareholder consent for increasing the authorised share capital. An ordinary resolution must be passed by the shareholders to formally approve the increase.
Step 4: File Form SH-7 with the Registrar of Companies (RoC)
Once the ordinary resolution is approved in the EGM, the company must file Form SH-7 with the Registrar of Companies within 30 days of the resolution being passed. The applicable government fee must be paid along with the following documents: Notice of the Extraordinary General Meeting Certified true copy of the ordinary resolution Updated Memorandum of Association reflecting the revised authorised capital
Step 5: Approval and Allotment of Shares
After verifying the filing, the Registrar of Companies will approve the application and update the company’s authorised share capital on the MCA portal. If the Company Identification Number (CIN) changes due to an update in the industry code, the RoC will issue a new Certificate of Incorporation to reflect the modification.
FAQ's
The restriction on how much money a corporation can raise from the public is known as authorised capital. As a result, in order to raise more cash from the general public, you must increase your company's authorised share capital as per your requirements.
Clause V of the MoA specifies the company's authorised share capital.
Within 30 days following the resolution to raise authorised share capital, a company must file Form SH-7.
Yes, the entire procedure is completed online.
To raise a company's authorised capital, the articles of association must include a clause covering the increase in authorised capital, one will also require prior consent from the company's shareholders.
