Increase in Authorized Share Capital

Overview

Authorized Capital Increase is the process Taxeto uses to raise the maximum share capital a company is permitted to issue under the Companies Act, 2013, by altering the capital clause of the Memorandum of Association. Taxeto manages the board and shareholder approvals and files Form SH-7 with the MCA so the company can bring in new investors or issue additional shares for expansion.

Benefits

• Enables the company to raise additional funds
• Allows new shareholders and investors to come on board
• Supports long-term financial planning and growth
• Ensures a proper legal structure for future share issuance

Eligibility

• Company must be active
• Must have a valid MOA and AOA
• Must pass board and shareholder resolutions
• Must comply with MCA rules

Documents Required

1. 1Board resolution
2. 2Shareholder special resolution
3. 3Updated MOA
4. 4Notice of EGM
5. 5Certificate of incorporation
6. 6MCA filing Form SH-7

Process

1. 1

   Board Meeting

   Approve the increase in authorized capital.

2. 2

   Shareholder Approval

   Pass a special resolution at an EGM.

3. 3

   MOA Amendment

   Update the capital clause in the MOA.

4. 4

   Filing with MCA

   Submit Form SH-7.

5. 5

   Approval

   Updated capital is recorded by the MCA.

Frequently Asked Questions