Authorized Share Capital - The maximum amount a company is legally allowed to issue.
Issued Share Capital - The portion of authorized capital that has been issued to shareholders.
Subscribed Share Capital - The part of issued capital investors have agreed to purchase.
Paid-up Share Capital - The portion of subscribed capital that investors have paid.
Reserve Share Capital - A portion kept aside for future issuance.

Funding Expansion - Attract investors and scale operations.
Compliance with Investors’ Requirements - Many investors prefer a higher share capital limit.
Issuing More Shares - Enables issuing new shares without delays.
Boosting Financial Credibility - Higher capital improves your business reputation.
Easy Loan Approvals - Banks favor companies with strong capital structures.

Legal Agreements & Capital Investment Requirements

Board Resolution & Shareholders' Resolution - Approval for capital increase.
Amended MOA (Memorandum of Association) - Reflecting the revised capital structure.
ROC Filing Forms (SH-7 & MGT-14) - As per the Companies Act.
Investment Plan - Estimating the capital requirement for expansion.

1
Review Company Bylaws
- Check the Articles of Association (AOA) to see if capital increase provisions exist.
- If not, amend them first.
2
Board Meeting Resolution
- Call a board meeting and pass a resolution for increasing the share capital.
3
General Meeting Approval
- Convene a shareholders' meeting and get approval via an Ordinary Resolution.
4
Filing with ROC
- Submit Form SH-7 along with the revised MOA and board resolutions to the Registrar of Companies (ROC).
5
Payment of Fees
- The government charges depend on the increase amount and state regulations.
6
Final Approval
- After verification, the ROC updates the company’s records to reflect the new authorized share capital.

Frequently Asked Questions