Article · Guide

Increase Authorised Share Capital: Process, Form SH-7 and Stamp Duty

Treelife · treelife.in Free Intermediate India

A founder-focused guide to authorised capital under Section 2(8) and how to raise it before a funding round: the resolution under Section 61, Form SH-7 within 30 days, and the fee and state stamp duty that follow.

  • Shares cannot be allotted beyond authorised capital until the ROC approves an increase.
  • File SH-7 within 30 days of the resolution, paying the ROC fee difference and state stamp duty.
  • If funding is likely within 12 to 18 months, set authorised capital above today's need at incorporation.
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It answers 2 questions

  1. What are the MOA and AOA of a company?
  2. What are authorised capital and paid-up capital?

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