Change in Authorised Capital in India – From 2,499 + GST

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Change in Authorised Capital in India

Are you a company planning to raise funds, issue new shares, or restructure your equity in India? Patron Accounting is here to assist you in changing your Authorised Capital with speed, clarity, and expert guidance.

Changing Authorised Capital is a statutory requirement under the Companies Act, 2013, and must be done with proper approvals, updated MoA, and filings with the Registrar of Companies (ROC). At Patron Accounting, we specialize in helping startups, SMEs, and growing enterprises complete this process smoothly — from drafting resolutions to filing Form SH-7, ensuring full compliance at every step.

We understand that corporate filings and approvals can be complex and time-consuming. Our experienced consultants simplify the procedure, avoid errors, and secure timely approvals so you can focus on your company’s growth and business priorities. Whether you are increasing authorised capital for the first time or restructuring for future expansion, Patron Accounting offers professional, reliable, and end-to-end support.

Join the growing number of businesses that trust Patron Accounting to handle their corporate compliance with ease.

Why is Change in Authorised Capital Essential?

Amending a company’s authorised capital is a legal necessity under the Companies Act, 2013. No company can issue shares beyond its authorised capital, making this step mandatory whenever businesses plan to raise funds, issue new shares, or bring in new investors. Ensuring compliance with this requirement protects the company from regulatory penalties and maintains its legal standing.

The process involves passing board or shareholder resolutions, filing Form SH-7 with the Registrar of Companies (ROC), and updating the Memorandum of Association (MoA) to reflect the revised capital structure. These steps ensure that the company’s official records are accurate and legally recognized, providing valid proof of compliance for investors, lenders, and regulators.

Increasing authorised capital empowers businesses to attract investors, secure additional funding, and expand operations efficiently. Timely and proper modifications enhance corporate credibility, prevent disputes in capital-related transactions, and safeguard both shareholder and company interests.

By complying with authorised capital requirements, companies not only maintain lawful operations but also create a foundation for sustainable growth, transparent governance, and strengthened investor confidence.

How Can Change in Authorised Capital Drive Your Business Growth?

Legal Compliance and Flexibility

Increasing authorised capital ensures your company stays compliant with the Companies Act, 2013, while providing the flexibility to issue new shares. This enables lawful expansion and smooth execution of business growth strategies without regulatory hurdles.

Investor Confidence and Funding Access

An updated capital structure allows companies to attract new investors, raise equity, and access additional funding opportunities. Investors are more likely to engage with businesses that demonstrate legal compliance and clear capital planning.

Enhanced Market Credibility

By reflecting a robust capital structure, your company strengthens its reputation among stakeholders, banks, and financial institutions. This credibility is crucial when negotiating loans, partnerships, or strategic investments.

Protection Against Legal Restrictions

Altering authorised capital ensures that all share issuances are legally valid. Proper compliance prevents disputes, fines, or other regulatory complications that could otherwise block growth initiatives.

Long-Term Growth Enabler

Higher authorised capital allows companies to plan for expansions, diversify ownership, and sustain growth over time. It provides the foundation for scaling operations and accommodating future business opportunities.

Better Corporate Governance

Capital alterations align with statutory compliance norms and enhance transparency. Companies demonstrate responsible governance practices, building trust with shareholders, regulators, and partners.

Companies are required to alter their authorised capital under the following circumstances:

Startups and Growing Companies

Startups and expanding businesses often need additional funds to scale operations, launch new projects, or attract investors. Increasing authorised capital ensures they have the legal capacity to issue new shares in line with growth plans.

Businesses Seeking Equity Investment

Companies preparing for venture capital, angel investment, or private equity funding must update their authorised capital. This enables smooth allotment of shares to investors while maintaining compliance with statutory requirements.

Companies Issuing Bonus or Rights Shares

Before issuing bonus or rights shares, companies must revise their authorised capital. This guarantees that all new shares are issued legally and prevents disputes with existing shareholders.

Restructuring & Expansion Plans

Organizations that are altering their shareholding pattern, bringing in new partners, or merging with other entities must change authorised capital. Proper adjustments ensure that the company’s official records reflect the updated ownership and capital structure.

Compliance & Legal Protection

Updating authorised capital helps companies remain compliant with the Companies Act, 2013. It ensures that all future share allotments are valid, reduces the risk of penalties, and safeguards both company and investor interests.
Please Note: There is no restriction based on turnover. From small startups to large corporates, every company must revise its authorised capital before issuing shares beyond the existing limit to remain legally compliant and enable smooth business expansion.

Change in Authorised Capital: A Guide by Patron Accounting

At Patron Accounting, we make authorised capital alteration simple, seamless, and fully compliant. Our step-by-step approach ensures companies update their capital structure efficiently under the Companies Act, 2013.

Free Consultation & Eligibility Check

We review your existing capital structure, AoA provisions, and compliance status to recommend the best approach for capital alteration.

Document Collection & Verification

Our team collects essential documents, including the Board Resolution, MoA, AoA, and incorporation details, and verifies them for accuracy and compliance.

Drafting Resolutions & Forms

We prepare Board and Special Resolutions along with the necessary statutory forms to ensure smooth regulatory filings.

Filing SH-7 with ROC

Form SH-7 is submitted accurately on the MCA/ROC portal within the prescribed timelines, ensuring legal compliance.

Follow-up

We handle any queries or clarifications raised by the ROC, tracking the application until approval is granted.

Completion & Ongoing Support

Once the authorised capital change is approved, we provide official confirmation and continue to support future capital restructurings and related filings.

Documents Checklist for Change in Authorised Capital in India

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    Board Resolution – A resolution passed by the board approving the proposed alteration in authorised capital.

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    Memorandum of Association (MoA) – Updated MoA reflecting the revised authorised capital as per the Companies Act, 2013.

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    Articles of Association (AoA) – Updated AoA, if required, reflecting the changes in shareholding or capital clauses.

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    Increase Capital Documentation – Supporting paperwork showing the proposed increase in authorised capital and necessary approvals.

Please Note: Ensure that all documents are accurate, signed, and up to date. Patron Accounting provides end-to-end support in preparing, verifying, and submitting these documents to ensure a smooth and compliant authorised capital change process.

Why Choose Patron Accounting for Change in Authorised Capital in India

Expert Guidance

Expert Guidance

Our professionals provide detailed advice on legal provisions, documentation, and procedural requirements for altering authorised capital. We ensure that your company follows the Companies Act, 2013, accurately and efficiently.
End-to-End Assistance

End-to-End Assistance

From drafting Board and Special Resolutions to filing Form SH-7 with the ROC, we manage every step of the process. This ensures a smooth, hassle-free experience for your business.
Quick Turnaround

Quick Turnaround

We prioritize timely preparation, filing, and approvals to avoid unnecessary delays. Our streamlined approach helps companies implement capital changes without interrupting business operations.
Error-Free Filing

Error-Free Filing

All documents and filings are thoroughly verified for accuracy and completeness. This minimizes the risk of rejections or queries from the ROC, keeping the process seamless.
Affordable Pricing

Affordable Pricing

We offer transparent, competitive pricing designed to suit startups, SMEs, and large enterprises. There are no hidden costs, ensuring predictable and cost-effective compliance.
Dedicated Support

Dedicated Support

Our experienced team stays connected throughout the process to answer queries, provide updates, and assist with any clarifications from the ROC.

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Frequently Asked Questions

Have a look at the answers to the most asked questions.

FAQ Illustration

Any company planning to issue more shares than what is permitted in its current authorised capital.

Yes, if a company wants to raise funds or issue new shares beyond its existing authorised limit.

Resolutions, updated MoA, incorporation certificate, PAN, DSC, and proof of ROC fee payment.

Yes, companies can revise their authorised capital as needed by following due process.

It allows raising investments, issuing new shares, enabling expansion, and building investor trust.
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