FreeComplianceIncreasing authorised share capital: SH-7 process
A company cannot issue shares beyond its authorised capital. Before a funding round or ESOP pool, it often has to increase it. The process runs under Section 61 and ends with filing SH-7 within 30 days.
Process
- 1.Check the AOA authorises the company to alter its capital; amend it if not.
- 2.Board approves the proposal and calls a general meeting.
- 3.Shareholders pass an ordinary resolution (unless the AOA requires a special resolution).
- 4.Amend the capital clause of the MOA.
- 5.File SH-7 within 30 days with the resolution and altered MOA and AOA.
- 6.Pay MCA fees and stamp duty on the increase.
Costs
MCA fees depend on the amount of the increase, and stamp duty is payable to the state on the increased authorised capital. Increasing in one larger step usually costs less than many small ones.
Frequently asked questions
This guide is general information, not legal advice. Government fees and procedures change; confirm current figures before you file.
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