Authorised Capital Increase

Authorised share capital means the maximum amount of the share capital for which shares can be issued by the company to shareholders.

Authorised share capital means the maximum amount of the share capital for which shares can be issued by the company to shareholders. At the time of company incorporation the authorized capital mentioned in the Memorandum of Association. The authorised capital can be increase by the company at any point of time after paying the fee to the ROC.

The Companies Act 2013 allows the companies to alter its authorised share capital with certain procedures which are governed by Section 61-64 of the Act along with Section 13 and 14 of the act which governs the alterations to the Chartered Documents being the Memorandum of Association and Articles of Association of the company. Once the authorised share capital is increased, new shares can be issued to existing or new stakeholders and money raised shall be deposited in company’s bank account. It is always advisable to have higher authorised share capital, which may become paid-up share capital as and when required basis.


How to increase the Authorised Capital of the Company?

  • The Company Act 2013 allowed in section 61 the company can be increase the authorised capital any time if the necessary provision is allowed by the Articles of Association of the company.
  • Board meeting should be held for taking the approval of increase the authoirsed capital. As per section 101 of the company act 2013 the notice to be issued to every members/shareholder and directors of the company.
    Extraordinary General Meeting should be called and ordinary resolutions pass for increase the authorised capital of the company.
  • Forms submit to ROC within time frame after passing the ordinary resolution in EGM. The final forms should be file along with the
    • Altered MOA & AOA,
    • Board resolution,
    • Board resolution for modification of capital clause of MOA
    • Shareholder resolution

Documents Required

  • Notice of Board Meeting
  • Minutes of the Meeting
  • Board Resolution
  • Notice of EGM
  • Minutes of EGM
  • EGM Resolution
  • Final form file to ROC

Frequently asked questions

Any minimum Authorised capital requirement?

The minimum authorised capital is Rs 1 lac for the company.

Any government fee is applicable for alteration in Authorised capital?

Yes, the government will be charge the fee as per the

Which documents required for increase the authorised capital?

  • altered MOA & AOA,
  • Board resolution,
  • Board resolution for modification of capital clause of MOA
  • Shareholder resolution

What is the unissued capital?

Unissued capital is the portion of authorized capital those are not issue to any member.

What is the share premium?

Share premium is the additional amount of share capital and collect from the shareholder and will kept in a separate account.

₹4999