Authorized Share Capital Increase Services in India
An increase in Authorized Share Capital is required when a company plans to issue additional shares for business expansion, investor onboarding, funding rounds, or corporate restructuring. The authorized capital represents the maximum value of shares that a company is permitted to issue as stated in its Memorandum of Association.
This process ensures that a company can legally raise funds or modify its equity structure while remaining compliant with the Companies Act, 2013.
What Is Authorized Share Capital Increase
Authorized Share Capital refers to the maximum share capital a company is allowed to issue to its shareholders. When a business intends to raise capital by issuing new shares, it must increase this limit if the existing authorized capital is insufficient.
Under the Companies Act, 2013, companies must follow a formal procedure that includes:
Passing board and shareholder resolutions
Updating the Memorandum of Association
Filing statutory forms with the Registrar of Companies
Maintaining updated corporate records
These steps ensure that the increase is legally valid and officially recorded.
Why Companies Need Authorized Share Capital Increase
An increase in authorized capital supports multiple business objectives.
Allows companies to raise additional funds
Facilitates onboarding of new investors
Supports issuance of ESOPs, rights shares, or bonus shares
Enables restructuring during mergers or acquisitions
Ensures compliance with regulatory requirements
This process helps companies stay growth ready and investor compliant.
Common Reasons for Increasing Authorized Capital
Companies typically increase authorized capital when:
Raising fresh investment
Issuing new equity or preference shares
Introducing employee share plans
Expanding business operations
Preparing for corporate restructuring or partnerships
Our Authorized Share Capital Increase Services
Board and Shareholder Approvals
Preparation of board resolutions
Drafting of special resolutions for general meetings
Guidance on voting and quorum requirements
Updating statutory registers
MCA Filings and MOA Update
Preparation and filing of Form SH-7
Updating and filing the revised Memorandum of Association
Ensuring compliance with Companies Act provisions
Maintaining audit-ready documentation
Compliance Advisory and Support
Guidance on share structure and capital planning
Support with internal records and investor disclosures
Advisory on governance and statutory obligations
Why Partner With i Tax GST Filing
Experienced professionals in corporate compliance
Accurate drafting of resolutions and legal documents
Timely filing and regulatory follow-up
Scalable services for startups and established companies
Transparent process and compliance support
Our Commitment
i Tax GST Filing manages the Authorized Share Capital Increase process from start to finish. From approvals and statutory filings to MOA updates and compliance checks, every step is handled to keep your company legally compliant and ready for growth.
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Increase your Authorized Share Capital with clarity and compliance.
Connect with i Tax GST Filing for professional Authorized Share Capital Increase services.