Increasing authorised capital requires review of the company’s constitutional authority, applicable approvals and filing requirements. SH-7 relates to alterations of share capital under the statutory framework. A later allotment of shares is a separate action and should not be confused with raising the authorised limit. [1] [2]
Check the documents and proposal
Review the memorandum/articles, existing authorised capital, share classes and the proposed increase. Determine the resolutions and notices required. Calculate applicable filing/stamp charges using current rules for the actual alteration, not a new-company incorporation estimate.
Complete records in sequence
Hold the relevant approvals, update constitutional documents and submit the required filing with accurate dates and attachments. If new shares will be issued, prepare that separate proposal and related compliance. Keep updated documents and acknowledgements accessible to accounts and investors.
Practical preparation checklist
- Existing MOA/AOA and current capital structure.
- Proposed limit/share classes and approval route.
- Current alteration filing/stamp calculation.
- Updated documents and any separate allotment plan.
Illustrative example
A company increases its authorised capital from one amount to a higher amount but issues no new shares immediately. Existing ownership and paid-up capital do not automatically change merely because the ceiling increased.
Avoid this mistake
Do not use an incorporation stamp chart to quote every capital increase or assume one filing completes an investment round. Check the transaction sequence, applicable securities rules and required professional certification before taking funds or issuing shares.
Official sources & further reading
Sources support the topics discussed; linking a source does not imply government endorsement. Procedural and financial conditions must be checked against current notifications and the relevant period.
Prepared 2026-10-29. Published 2026-10-29. Source-based editorial guide; no individual professional reviewer is asserted.
This is general educational information, not a case-specific legal, tax or investment opinion. Contact the team to discuss a defined assistance scope.
