{"id":28879,"date":"2025-03-08T15:46:56","date_gmt":"2025-03-08T10:16:56","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=28879"},"modified":"2025-09-05T17:27:25","modified_gmt":"2025-09-05T11:57:25","slug":"procedure-to-increase-authorized-share-capital-of-pvt-ltd-co","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/procedure-to-increase-authorized-share-capital-of-pvt-ltd-co\/","title":{"rendered":"Procedure to Increase Authorized Share Capital of Pvt ltd Co"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dd0f703999c\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dd0f703999c\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/procedure-to-increase-authorized-share-capital-of-pvt-ltd-co\/#Increase_in_authorised_capital_of_a_Private_Limited_Company_in_India\" title=\"Increase in authorised capital of a Private Limited Company in India\">Increase in authorised capital of a Private Limited Company in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/procedure-to-increase-authorized-share-capital-of-pvt-ltd-co\/#Reasons_for_Increasing_Authorized_Share_Capital_of_a_Pvt_Co\" title=\"Reasons for Increasing Authorized Share Capital of a Pvt Co.\u00a0\">Reasons for Increasing Authorized Share Capital of a Pvt Co.\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/procedure-to-increase-authorized-share-capital-of-pvt-ltd-co\/#Documents_Required_for_Authorised_Share_Capital_Increase\" title=\"Documents Required for Authorised Share Capital Increase\">Documents Required for Authorised Share Capital Increase<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/procedure-to-increase-authorized-share-capital-of-pvt-ltd-co\/#Procedure_to_Increase_Authorized_Share_Capital\" title=\"Procedure to Increase Authorized Share Capital\">Procedure to Increase Authorized Share Capital<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/procedure-to-increase-authorized-share-capital-of-pvt-ltd-co\/#Filing_Form_SH-7_for_Capital_Increase_with_ROC_MCA_Portal\" title=\"Filing Form SH-7 for Capital Increase with ROC (MCA Portal): \">Filing Form SH-7 for Capital Increase with ROC (MCA Portal): <\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/procedure-to-increase-authorized-share-capital-of-pvt-ltd-co\/#Penalties_for_Non-Compliance_with_Authorised_Capital_Increase_Procedures\" title=\"Penalties for Non-Compliance with Authorised Capital Increase Procedures\">Penalties for Non-Compliance with Authorised Capital Increase Procedures<\/a><ul class='ez-toc-list-level-4'><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/procedure-to-increase-authorized-share-capital-of-pvt-ltd-co\/#Failure_to_Comply_with_Procedural_Requirements\" title=\"Failure to Comply with Procedural Requirements:\">Failure to Comply with Procedural Requirements:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/procedure-to-increase-authorized-share-capital-of-pvt-ltd-co\/#Late_Filing_of_Form_SH-7_which_must_be_filed_within_30_days_of_the_resolution\" title=\"Late Filing of Form SH-7 (which must be filed within 30 days of the resolution):\">Late Filing of Form SH-7 (which must be filed within 30 days of the resolution):<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/carajput.com\/blog\/procedure-to-increase-authorized-share-capital-of-pvt-ltd-co\/#Services_Offered_by_Rajput_Jain_Associates\" title=\"Services Offered by Rajput Jain &amp; Associates\">Services Offered by Rajput Jain &amp; Associates<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-22729\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2019\/09\/Procedure-Foreign-Company-in-an-Indian-Company.gif\" alt=\"Procedure Foreign Company in an Indian Company\" width=\"961\" height=\"394\" \/><\/h2>\n<h2><span class=\"ez-toc-section\" id=\"Increase_in_authorised_capital_of_a_Private_Limited_Company_in_India\"><\/span><span style=\"color: #000080;\"><strong>Increase in authorised capital of a Private Limited Company in India<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Increasing the Authorised Share Capital of a Private Limited Company in India their is No approval from the Central Government is needed. And Government fees depend on the amount of increase in authorised capital. Moreover Delay in filing SH-7 may attract penalties.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Reasons_for_Increasing_Authorized_Share_Capital_of_a_Pvt_Co\"><\/span><span style=\"color: #000080;\"><strong>Reasons for Increasing Authorized Share Capital of a Pvt Co.\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Reasons for Increasing Authorised Share Capital<\/p>\n<ul>\n<li>A company may decide to increase its authorised capital for several strategic and financial reasons, such as\n<ul>\n<li>Addressing significant financial needs<\/li>\n<li>Funding new business initiatives<\/li>\n<li>Facilitating mergers or acquisitions and restructuring plans<\/li>\n<li>Issuing additional shares for fundraising<\/li>\n<li>Converting debt into equity\\<\/li>\n<li>Meeting regulatory requirements, if applicable<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Documents_Required_for_Authorised_Share_Capital_Increase\"><\/span><span style=\"color: #000080;\"><strong>Documents Required for Authorised Share Capital Increase<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>T<strong>he company must submit the required documents within 30 days after obtaining shareholder approval. \u00a0Mandatory Documents for Filing with ROC are as follows : <\/strong><\/p>\n<ul>\n<li>Form SH-7 (for updating the authorised capital with the Registrar of Companies)<\/li>\n<li>Latest amended version of the Memorandum of Association (MoA)<\/li>\n<li>Revised AoA (if changes were made)<\/li>\n<li>Certified copy of the Ordinary Resolution passed by shareholders<\/li>\n<\/ul>\n<p>Note: <em>For private companies, Form MGT-14 is not required for increasing authorised capital.<\/em><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Procedure_to_Increase_Authorized_Share_Capital\"><\/span><span style=\"color: #000080;\"><strong><em>Procedure to Increase Authorized Share Capital<\/em><\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><em>Increasing a company&#8217;s <strong>authorized share capital<\/strong> involves multiple steps, ensuring regulatory compliance and securing shareholder approval. Below is a detailed guide to the process.<\/em><\/p>\n<p><strong>Increasing the authorized share capital of a private limited company in India involves the following steps:<\/strong><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-28880\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/ROC-1-Capital-.jpg\" alt=\"Procedure to Increase Authorized Share Capital of Pvt ltd Co\" width=\"957\" height=\"375\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/ROC-1-Capital-.jpg 957w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/ROC-1-Capital--300x118.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/ROC-1-Capital--768x301.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2025\/03\/ROC-1-Capital--800x313.jpg 800w\" sizes=\"(max-width: 957px) 100vw, 957px\" \/><\/p>\n<ul>\n<li>Check Articles of Association (AOA) :\n<ul>\n<li>Check for Existing Provisions: If the AoA permits increasing the authorized capital, the process is straightforward.<\/li>\n<li>Amend the AoA (If Required): If the AoA lacks this provision, it must be amended under Section 14 of the Companies Act, 2013, before altering the capital structure.<\/li>\n<\/ul>\n<\/li>\n<li>Hold a Board Meeting:\n<ul>\n<li>Issue Notice: Notify all directors at least 7 days in advance with the meeting agenda.<\/li>\n<li>Board Resolution: Pass a resolution to convene an Extraordinary General Meeting (EGM) and approve the proposed increase in authorized share capital.<\/li>\n<li>Issue EGM Notice: Shareholders, directors, and auditors must receive at least 21 days\u2019 notice unless 95% of voting members consent to a shorter notice period.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li>Hold an Extraordinary General Meeting (EGM) (If required):\n<ul>\n<li>Present the Proposal: The agenda to increase authorized share capital is formally introduced.<\/li>\n<li>Voting Process: Shareholders vote in accordance with the notice provisions.<\/li>\n<li>Resolution Approval: Upon obtaining the required approval, the capital increase is authorized.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul>\n<li>Regulatory Filings with the ROC : We needed to check If the articles require shareholder approval, conduct an EGM and pass an Ordinary Resolution or Special Resolution as per the AOA.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Filing_Form_SH-7_for_Capital_Increase_with_ROC_MCA_Portal\"><\/span><span style=\"color: #000080;\"><strong>Filing Form SH-7 for Capital Increase with ROC (MCA Portal): <\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li>We require to file Form SH-7 within 30 days of passing the resolution. \u00a0Details Required: Company CIN, Type of resolution, Meeting date, Original &amp; revised authorized share capital details, Stamp duty fees details, Digital signatures and DINs<\/li>\n<li>With the Following Attachments:\n<ul>\n<li>Certified copy of the Board Resolution<\/li>\n<li>Shareholder\u2019s Resolution (if applicable)<\/li>\n<li>Amended MOA (Memorandum of Association)<\/li>\n<li>Updated MoA and AoA, Any other optional documents (if required)<\/li>\n<\/ul>\n<\/li>\n<li>After completion of SH-7: Mandatory Requirement: Payment of e-stamp duty for the increased authorized share capital via the MCA portal.<\/li>\n<\/ul>\n<\/li>\n<li>Post-Approval Compliance:\n<ul>\n<li>Update MoA &amp; AoA: Ensure all company records and documents reflect the new capital structure.<\/li>\n<li>Share Allotment: With the authorized share capital increased, the company can issue additional equity shares to existing or new shareholders, thereby infusing funds into the business.<\/li>\n<\/ul>\n<\/li>\n<li>Registrar of Companies (ROC) Approval : The ROC verifies the documents and, if found in order, updates the company\u2019s Master Data to reflect the increased authorised share capital.<\/li>\n<li>Issue of New Shares (If Required) : Once the authorised share capital is increased, the company can allot additional shares by passing a separate Board Resolution and filing Form PAS-3 for share allotment.<\/li>\n<\/ul>\n<h3><span class=\"ez-toc-section\" id=\"Penalties_for_Non-Compliance_with_Authorised_Capital_Increase_Procedures\"><\/span><span style=\"color: #000080;\"><strong>Penalties for Non-Compliance with Authorised Capital Increase Procedures<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The Companies Act, 2013, under Sections 61 and 65, governs the increase in authorised capital. While these sections outline the process, penalties for non-compliance are covered under Section 450 of the Act.<\/p>\n<h4><span class=\"ez-toc-section\" id=\"Failure_to_Comply_with_Procedural_Requirements\"><\/span><span style=\"color: #000080;\"><strong>Failure to Comply with Procedural Requirements:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>A penalty of \u20b910,000 is imposed on the company and its officers.<\/li>\n<li>An additional penalty of \u20b91,000 per day applies until the issue is resolved.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Late_Filing_of_Form_SH-7_which_must_be_filed_within_30_days_of_the_resolution\"><\/span><span style=\"color: #000080;\">Late Filing of Form SH-7 (which must be filed within 30 days of the resolution):<\/span><span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li>INR 1,000 per day of delay is charged.<\/li>\n<li>The maximum penalty is capped at INR 25,00,000\/-.<\/li>\n<li>Delays in filing Form SH-7 can result in significant penalties, making timely compliance essential<\/li>\n<\/ul>\n<h3 data-start=\"211\" data-end=\"265\"><span class=\"ez-toc-section\" id=\"Services_Offered_by_Rajput_Jain_Associates\"><\/span><span style=\"color: #000080;\"><strong data-start=\"215\" data-end=\"263\">Services Offered by Rajput Jain &amp; Associates<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><strong><span style=\"color: #000080;\">Company &amp; Entity Services<\/span><\/strong><\/p>\n<ul data-start=\"301\" data-end=\"446\">\n<li data-start=\"301\" data-end=\"388\">Incorporation of Private Limited Companies, LLPs, and Partnership Firms<\/li>\n<li data-start=\"389\" data-end=\"446\">ROC Compliances and filing of statutory documents<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Income Tax Services<\/strong><\/span><\/p>\n<ul data-start=\"476\" data-end=\"644\">\n<li data-start=\"476\" data-end=\"505\">Filing of TDS Returns<\/li>\n<li data-start=\"506\" data-end=\"564\">Filing of Income Tax Returns &amp; related compliances<\/li>\n<li data-start=\"565\" data-end=\"602\">Capital Gains Tax Consultancy<\/li>\n<li data-start=\"603\" data-end=\"644\">Accounting &amp; Bookkeeping Services<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>GST Services<\/strong><\/span><\/p>\n<ul data-start=\"667\" data-end=\"731\">\n<li data-start=\"667\" data-end=\"691\">GST Registration<\/li>\n<li data-start=\"692\" data-end=\"731\">GST Return Filing &amp; Compliances<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Start-up Consultancy<\/strong><\/span><\/p>\n<ul data-start=\"762\" data-end=\"872\">\n<li data-start=\"762\" data-end=\"826\">Guidance on entity selection, structuring, and registrations<\/li>\n<li data-start=\"827\" data-end=\"872\">Advisory for new businesses and start-ups<\/li>\n<\/ul>\n<p><span style=\"color: #000080;\"><strong>Tax &amp; Advisory Services<\/strong><\/span><\/p>\n<ul data-start=\"906\" data-end=\"1010\">\n<li data-start=\"906\" data-end=\"944\">Direct &amp; Indirect Tax Advisory<\/li>\n<li data-start=\"945\" data-end=\"1010\">Strategic tax planning for individuals, firms, and corporates<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Increase in authorised capital of a Private Limited Company in India Increasing the Authorised Share Capital of a Private Limited Company in India their is No approval from the Central Government is needed. And Government fees depend on the amount of increase in authorised capital. Moreover Delay in filing SH-7 may attract penalties. Reasons for &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10034],"tags":[10234],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/28879"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=28879"}],"version-history":[{"count":4,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/28879\/revisions"}],"predecessor-version":[{"id":28883,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/28879\/revisions\/28883"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=28879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=28879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=28879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}