KNAP Advisory

Increase Authorized Capital

Need to issue more shares than your current limit allows? KNAP Advisory alters your capital clause, secures the approvals and files SH-7 so you can raise capital without delay.

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Overview

What is authorized capital?

Authorized capital is the maximum value of shares a company can issue, as fixed in the capital clause of its Memorandum of Association. A company cannot issue shares beyond this limit, so when it needs to raise more equity it must first increase the authorized capital.

The process requires checking the articles, board and shareholder approvals, altering the MOA and filing Form SH-7 with the Registrar along with the applicable fees and stamp duty. KNAP Advisory manages all of it so your fundraising is not held up.

Benefits

Why increase it

Raise Capital

Issue more shares to bring in funds and investors.

Support Growth

Fund expansion, projects and working capital.

Onboard Investors

Create headroom for new equity participation.

Convert Loans

Enable conversion of debt into equity where planned.

Stay Compliant

Issue shares strictly within legal limits.

Stronger Profile

A larger capital base can improve credibility.

Requirements

What you’ll need

Approvals & Resolutions

  • Board resolution for the increase
  • Notice and resolution of the general meeting
  • Altered capital clause of the MOA
  • Check of authorising power in the AOA

Company Details

  • Existing and proposed capital figures
  • Current MOA and AOA
  • Company master data
  • Fee and stamp duty computation
Process

How KNAP handles it

1

Check Articles

We confirm the AOA permits the increase, and amend if needed.

2

Approvals

We arrange board and shareholder resolutions.

3

Alter MOA

We update the capital clause of the Memorandum.

4

File SH-7

We file with the Registrar and pay the fees and stamp duty.

Why KNAP Advisory

Fast, correct, compliant

Accurate Fees

Correct computation of fees and stamp duty.

Proper Drafting

Resolutions and MOA amendments done right.

Quick Turnaround

We keep your fundraising timeline on track.

FAQs

Frequently asked questions

What is authorized capital? +

It is the maximum value of shares a company can issue, fixed in its MOA. It can be increased when more capital is needed.

Why increase it? +

To issue more shares than the current limit allows, for example to bring in funding or new investors.

What is the procedure? +

Check the articles, pass board and shareholder resolutions, alter the MOA capital clause and file SH-7 with the Registrar.

Which form is filed? +

Form SH-7 is filed with the Registrar to record the increase, with the applicable fees and stamp duty.

Is stamp duty payable? +

Yes. It usually attracts government fees and stamp duty, varying by the amount of increase and the state.

Get Started

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Raise your capital ceiling

Talk to KNAP Advisory and get started today.