💰 Increase in Authorized Capital

🏢 Empowering Your Business to Grow Beyond Limits

As your business expands, your financial structure must evolve to support new opportunities.
The Authorized Share Capital represents the maximum value of shares a company can issue. When your company plans to raise additional funds, issue new shares, or onboard investors, an increase in authorized capital becomes essential.

At KLS Advisors, we simplify the process of enhancing your company’s authorized share capital — ensuring full compliance with the Companies Act, 2013 and Registrar of Companies (ROC) guidelines.

💡 What is Authorized Capital?

Authorized capital (also known as registered capital) is the ceiling limit up to which a company is legally allowed to issue shares to its shareholders.
If your company needs to infuse additional equity or attract new investors, this limit must first be increased by amending the Memorandum of Association (MOA).

⚙️ When Should You Increase Authorized Capital?

• To raise additional funds for expansion or diversification

• To issue new shares to existing or new shareholders

• For conversion of loans into equity

• To implement ESOPs or rights issues

• Before mergers, acquisitions, or investment rounds

• To comply with investor agreements or restructuring plans

📜 Step-by-Step Process for Increasing Authorized Capital

1. Board Meeting

   • Convene a Board Meeting to propose an increase in authorized capital and call for an Extraordinary General Meeting (EGM).

2. Drafting Resolutions & Notices

   • Prepare a special resolution and EGM notice with an explanatory statement under Section 102 of the Companies Act.

3. Shareholders’ Approval

   • Pass the special resolution in the EGM by a 75% majority.

4. Amendment to MOA

   • Modify the Capital Clause (Clause V) of the MOA to reflect the new authorized share capital.

5. Filing with ROC

   • File Form SH-7 with the Registrar of Companies within 30 days of passing the resolution.

6. ROC Approval

   • Upon review, ROC registers the alteration and issues an acknowledgment confirming the increased authorized capital.

📋 Documents Required

• Copy of Board and Shareholder Resolutions

• Notice and Minutes of the EGM

• Amended MOA with updated capital clause

• Digital Signature Certificate (DSC) of authorized director

• Certificate of Incorporation and PAN of Company

• Form SH-7 and related government fee receipts

🧾 Our Services Include

• Legal consultation on capital restructuring

• Drafting and vetting of resolutions, notices, and amended MOA

• Filing Form SH-7 and coordinating with ROC

• Advisory on share allotment and post-approval compliance

• End-to-end documentation and record updating

🌟 Why Choose KLS Advisors

• Expert Company Secretaries and Legal Professionals

• 100% compliance with the Companies Act, 2013

• Hassle-free and timely processing

• Transparent pricing and dedicated client support

• Trusted by startups, SMEs, and large enterprises alike

🚀 Empower Your Business for Future Growth

Enhancing your company’s authorized capital is a strategic move that opens the door for expansion, investment, and long-term stability.
With KLS Advisors, you get complete legal support — from planning and documentation to ROC approval — ensuring your capital growth journey remains seamless and compliant.

📞 Contact Us: +91-9717720616
✉️ Email: info@klsadvisors.in
🌐 Website: www.klsadvisors.in