Increase in Authorized Capital

A company can raise its Authorized Share Capital, in a condition if an article of an association authorized it & after getting the permission of members by giving an ordinary resolution in EGM of the company.

• 1. To raise authorized share capital, check the provision of AOA.
• 2. In a situation AOA does not give permission to raise, after that the AOA must be changed under the companies act 2013, section-14.
• 3. In order to approve the increase in authorized capital, issue the notice for having a board meeting to change the AOA.
• 4. Declare the notice 7 days before the board meeting & 21 days before the EGM.

A company can increase authorized capital as they choose & In the MOA the same as mentioned. Then, raising in authorized capital has a step-by-step effect on the whole company share capital.

• 1. The latest copy of DSC (Digital signature certificate).
• 2. The latest copy of MOA (Memorandum of Association).
• 3. The latest copy of AOA (Articles of Association).
• 4. A copy of the Certificate of incorporation
• 5. A copy of the PAN card

• 1. Check if the company's AOA allows it to increase its authorized capital. If the AOA is not authorized, then you will need to pass a special resolution to amend it.


• 2. Hold a board meeting & pass a resolution to rise the authorized capital of the company


• 3. Organise, hold, & conduct an extraordinary general meeting on the designated date, place, & time & pass a resolution seeking shareholder approval. if there is a requirement of any form it should be submitted within the given time period.


• 4. After the company's Memorandum of Association to increase the authorized share capital


• 5. Within 30 days of passing the shareholders' resolution, file form SH-7 with the registrar of companies. If the resolution is passed as a special resolution, you must also file form MGT-14 within 30 days of the resolution's passage

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