Every growing company eventually reaches a stage where it needs more funds to expand, hire new talent, or attract investors. However, before issuing additional shares or bringing in new funding, a business must increase its authorized share capital — the maximum capital a company is permitted to raise through the issue of shares.

At Book Max Consultancy, Bangalore, we specialize in providing complete assistance for increasing authorized capital in compliance with the Companies Act, 2013. Our experienced company law consultants in Bangalore ensure a smooth, accurate, and legally compliant process — from drafting board resolutions to filing with the Registrar of Companies (ROC).

What is Authorized Share Capital?

Authorized Share Capital represents the maximum amount of share capital a company can issue to its shareholders as per its Memorandum of Association (MOA).

When your business plans to expand, onboard investors, or convert loans into equity, you must first increase the authorized share capital before issuing additional shares. Book Max Consultancy ensures this process is executed efficiently and in full ROC compliance.

When Should You Increase Authorized Capital?

A company may need to increase its authorized share capital in several situations, including:

• Expansion of business operations or scaling up projects
• Addition of new shareholders or investors
• Conversion of existing loans into share capital
• Rights issue or private placement of shares
• Merger, acquisition, or funding requirements
• Our ROC compliance experts in Bangalore guide you through every step to ensure the process is seamless.

Step-by-Step Procedure to Increase Authorized Share Capital

• Check the Articles of Association (AOA)
  Ensure that the AOA includes a clause allowing an increase in authorized capital. If not, it must be amended first.
•  Hold a Board Meeting
  The Board passes a resolution approving the increase and calling for an Extraordinary General Meeting (EGM).
• Conduct an EGM
  Shareholders pass an Ordinary Resolution approving the increase in capital.
• File Required ROC Forms
  File Form SH-7 and, if applicable, Form MGT-14 with the ROC within 30 days of the resolution.
•  Update Company Records
  Once approved, the ROC updates the company’s records, allowing the company to issue new shares.

Book Max Consultancy, Bangalore manages this entire process with accuracy and compliance, ensuring zero rejection or delays in ROC filings.

• Documents Required
• Copy of Board Resolution
• Copy of Ordinary Resolution passed in EGM
• Altered MOA & AOA (if amended)
• Notice and Minutes of the EGM
• Digital Signature Certificate (DSC) of an authorized director
• ROC fee payment challan