HomeAuthorised Share Capital
Raise Authorised Share Capital of Your Company
Do you want to expand the capital base of your company? Get in touch with Zolvit’s professional corporate lawyers to complete the process in 5 simple steps!
Here’s How It Works
Want to alter your business objectives? Get Zolvit to do your bidding!
1
Connect with a Zolvit expert
2
Get all your queries Resolved
3
Provide the required documents
4
MoA and AoA will be drafted
5
Registrar will be notified about the new capital
Excellent service and support. Vakil Search Team is very supportive and professional. I Really appreciate the service and support from the team.
Rachna Pathania
Founder & CEO of SchnellTek Software Pvt. Ltd.
Zolvit has been our legal service provider for quite a long time! Our experience with them has been great, especially the speed and proficiency with which they deliver their services. We recommend them!
Satya Vasireddy & Sravani Vasireddy
Founders of Lovely Chocos
Zolvit is exactly what it does. Legal is simple. We went to Zolvit to register our Trademark during the lockdown and everything was done online with ease. We never even had to step out of the house. It was truly a digital experience.
Adarsh Agarwal
CEO & Developer of Golghar.com
Here’s What You’ll Need
Once you have the below documents ready, submit them digitally to raise your company’s authorised share capital. Zolvit uses the best-in-industry security protocols to ensure your documents are always secure.
Certified true copy of ordinary resolution to increase the authorised share capital
Copy of altered MoA
Copy of altered AoA
A copy of the company’s incorporation certificate
A copy of the company’s PAN card
DSC copy of any authorised director of the company
Why Should I Use Zolvit to Raise Authorised Share Capital?
New Company
We Register a New Company Every 9 Minutes
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Business registered their trademark with zolvit
Financial Services
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Quick & Affordable
Nominal rates, great turnaround time
Satisfaction
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A strategic business plan that evolves as your business grows. Raise your company’s authorised share capital without breaking into a sweat with the help of the experts at Zolvit!
Did you know?
A limited company with a share capital may, under section 61 of the Companies Act, 2013, amend the capital clause of its Memorandum of Association by passing an ordinary resolution in a general meeting, if its Articles of Associations grant it the ability to do so.
Within 30 days, a notification of modification of the authorised share capital must be submitted with the ROC in Form No. SH-7.
FAQ's
When would it become necessary to increase the authorised capital of a company?
Under which clause of the MoA is authorised share capital mentioned?
When is the last day to submit Form SH-7?
Is the Zolvit process for raising the authorised share capital of a business completely online?
What are the prerequisites for increasing authorised share capital capital?
An Overview on Raising Authorised Share Capital of a Company
The maximum number of shares a private business can sell is determined by its permitted capital. According to the new Companies Act of 2013, no minimum capital is required. The vast majority of today's companies are self-funded and cash-strapped. As a result, they are unable to spend huge sums on getting a higher authorised share capital ceiling during the incorporation process. However, once the company expands they will need to raise the authorised share capital limit to issue more shares and make up for funding needs.
In order to issue additional shares or raise the allowed capital capital clause of the memorandum of association must be changed by adopting an ordinary resolution by the board.
Benefit of Raising Authorised Share Capital
Increases Available Funding
Enhances Borrowing Capacity
Jack ups Overall Net Worth
Checklist to Raise Authorised Share
- Check the AoA for a provision to enhance the approved share capital
- If the AoA does not allow for an increase, it must be changed in accordance with Section 14 of the Companies Act of 2013
- To approve the increase in authorised share capital, issue a notice for a board meeting to amend the AoA
- Call an extraordinary general meeting to amend the articles of association in order to approve the increase in authorised share capital
- Give notification at least seven days before the board meeting and at least 21 days before the EGM.
How to Raise Authorised Share Capital with Zolvit
To raise authorised share capital in India, gather all of the above documents and follow the steps below:
Step 1: Verify AoA of the Company
Before beginning the steps for raising the authorised share capital, check the AaA to confirm that a provision to increase the authorised share capital is included in the articles of association. If such a provision does not exist, the corporation must first make revisions to its AoA. If you’re unsure about whether your company is eligible to raise authorised share capital without amending AoA, don’t worry as the Zolvit experts will take over the entire process for you from step 1 itself.
Step 2: Convene a Board Meeting
To increase the company's authorised share capital, a board meeting must be called by giving notice to the directors. Obtaining approval from the board of directors for expanding the authorised share capital is required at the board meeting.
Following this procedure, a date should be set for an extraordinary general meeting to acquire shareholder approval for raising the authorised share capital and making modifications to the company's memorandum of association.
Finally, get consent from the board of directors, as well as the company secretary present at the meeting, to submit the notice of the extraordinary general meeting to the shareholders. The notice of extraordinary general meeting should be given to all of the company's shareholders, directors, and auditors following the approval.
Step 3: Obtain Approval in an Extra-Ordinary General Meeting
Organise an extraordinary general meeting and get shareholder approval to increase the authorised share capital at the time, date, and location specified in the notification.
An ordinary resolution must be passed by the shareholders to approve the increase in authorised capital.
Step 4: Filing of Form with RoC
After the ordinary resolution is passed at the extraordinary general meeting, the company must file Form SH7 within 30 days of the ordinary resolution being passed. The required government fee for the raise in authorised capital must be paid, along with the papers listed below -
- Notice relating to the EGM
- Authorised true copy of the ordinary resolution
- Altered memorandum of association depicting the raised authorised capital.
Step 5: Allotment of Shares
The registrar will approve the filing and raise the company's authorised share capital if the procedure described in the Companies Act and the companies rules is followed to enhance the company's authorised capital. The higher authorised share capital will be shown on the MCA website.
The RoC will issue a new certificate of incorporation to the company if the CIN number changes owing to a change in the industry code.