Increase Authorized Share Capital

Authorized is the maximum the company MAY issue (set in the MOA; fees/duty paid on it). Paid-up is what shareholders have actually subscribed and paid. Paid-up can never exceed authorized — hence the increase before any allotment that would cross the ceiling.

An ordinary resolution in general meeting suffices under Section 61 if the AOA authorises the increase; if the AOA lacks the power, a special resolution amending the AOA comes first. We check the articles before drafting anything — the classic sequencing error is resolving without the enabling power.

Two components: MCA fees on the incremental authorized capital (slab-based — roughly ₹4,000 per ₹1 lakh at the small end, tapering at higher slabs) plus state stamp duty on the increase (commonly 0.15%–0.5% by state, some with caps). We quote the exact figure for your state and target before you decide the amount.

Within 30 days of the resolution. Delay attracts additional fees in multiples of normal fees. Since the EGM date is in your control, there is no good reason to ever pay them — we file within days of the meeting.

No — the ceiling itself changes nothing. Dilution happens only when new shares are actually allotted. That said, investors read the increase as round preparation, so cap-table communication timing matters; we sequence documentation accordingly.

They are separate filings in mandatory order: SH-7 approval first, then allotment and PAS-3. Practically we run them back-to-back — same EGM can pass both enabling resolutions — so a funding close waits days, not weeks.

Yes — Clause V (capital clause) is restated with the new figure and filed with SH-7. All future certified copies carry the amended clause. We supply the clean restated MOA for your records and diligence folders.

No recurring MCA charge — the fees are one-time on the increase. (Filing-fee slabs for some forms scale with capital, a minor effect.) This is why sizing the increase generously for your horizon is usually the economical choice.