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5 Simple Steps to Authorized Capital Increase

1
Upload Basic Document
2
Make payment to Digital CA as per Plan
3
Digital CA will prepare MGT-14 with Various Supportings
4
Digital CA will file MGT-14 with all respect
5
Get ROC SRN Acknowledgment

What is Authorised Capital?

  • The authorized share capital is the maximum amount of share capital that a company can issue to its members/ shareholders.
  • Generally, the companies registered with a small authorized capital increase their capital as per the requirements of the Company.
  • As per the provisions of Section 61 Companies Act 2013 the companies can increase its authorized share capital with certain procedure read with Section 13 and 14 of the act; 
  • which governs the alterations to the Memorandum of Association and Articles of Association of the company.

Basic Documents

Documents Relating to Alteration of AoA

The following Documents will be required for altering Articles of Association of the Company

  • Notice of Annual General Meeting / Extraordinary General Meeting along with Explanatory Statemen
  • Shorter Consent received from the members of the company if the Annual General Meeting / Extraordinary General Meeting is held at shorter notice.
  • Copy of Shareholders Resolution
  • Altered Articles of Association

ROC Form and documents

 

 Following documents are required to be submitted along with e-form SH-7-

  • Board Resolution for the increase in Authorised Share Capital
  • Board resolution for modification in the capital clause of Memorandum of Association
  • Notice of Shareholders meeting along with the explanatory statement
  • Shorter Consent received from the shareholders in case the meeting is held at shorter notice. 
  • Shareholders’ Resolution that has been passed in the AGM /EGM.
  • Altered copy of Memorandum of Association and Articles of Association.
4999

Basic

All Inclusive Fees

  • Increase Authorized Up to 10 Lakh
9999

Silver

All Inclusive Fees

  • Increase Authorized Up to 25 Lakh
14999

Gold

All Inclusive Fees

  • Increase Authorized Up to 100 Lakh

Basic information

Approval within the Articles of Association

The first check before starting the process of increase in the Authorised Capital is to check whether any provision in Articles of Association regarding the increase in capital. If there is no provision in Article of Association for Increase in Authorised Capital, the Articles of Association of the Company will have to be altered.

Filing form MGT-14

The Company is required to file form MGT-14 within 30 days from the date of passing Shareholders resolution. 21 Clear days notice is required to be given to the shareholders before calling Annual General Meeting / Extraordinary General Meeting if not, consent for shorter notice of the shareholders required to be taken.

Attract additional fees

Delay in filing form up to 300 days will attract additional fees but the delay from and beyond 300 days will attract provisions related to condonation of delay under Section 460 and the Company has to condone the delay by making an application to the Central Government in form CG-1 before filing form MGT-14. However, we have to file MGT-14 within 30 days from the date of Sh. resolution. 

Board meeting

A board meeting is required to be called wherein it is decided that an AGM / EGM is to be held to discuss the matter of raising authorized share capital.

Hold Extraordinary General Meeting

The Ordinary Resolution under section 61(1) (a) of the Companies Act, 2013, is then passed to increase the Authorized Share Capital of the Company in the meeting.

ROC Form

Within 30 days of the passing of Ordinary Resolution, Form SH-7 must be filed with the concerned Registrar of Companies (ROC) along with the necessary fees and attachments as prescribed by Section 61 and 64.

Filing form SH-7

  • Before starting the process of Increase in authorized the Company needs to check whether the Articles of Association of the Company is containing an article related to an increase in capital.
  • Delay in filing form SH-7 will attract additional fees which will vary from 2.5% to 3% depending upon the period of delay in filing.

Start 4999 /- all inclusive fees
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