Services › Corporate › Increase in Authorised Capital and Share Allotment

Increase authorised capital and allot new shares

Before issuing new shares, a company needs enough authorised capital. We increase it through SH-7, then handle the allotment and PAS-3 return so your cap table and MCA records match.

Handled by qualified CS and CA5 to 7 working daysGovernment fees shown separately

What is included

  • Check of AOA and current capital structure
  • Board and shareholder resolution drafting
  • Altered MOA capital clause
  • SH-7 filing with MCA
  • Rights issue or private placement documentation
  • PAS-3 return of allotment
  • Share certificates and register of members update
  • Guidance on demat credit where required

What is not included

  • Government fees and stamp duty on increased capital (vary by state and amount)
  • Valuation report for issue at a premium
  • FEMA filings for foreign investors (FC-GPR)

Who needs this

Companies issuing shares to founders, investors or employees, or bringing in funds as equity when the current authorised capital is not enough.

Documents required

  • Current MOA, AOA and shareholding pattern
  • Proposed increase and allotment details
  • Allottee PAN, address and bank proof of payment
  • Valuation report, if shares are issued at a premium
  • Valid DSC of a director

How it works

Share the funding or allotment plan

We draft resolutions and file SH-7 for the capital increase

Shares are allotted and PAS-3 is filed with MCA

Timeline

5 to 7 working days. Government processing times are outside our control; we track and follow up on every application.

If you skip it

Penalty exposure: Late SH-7 filing attracts a penalty of Rs 500 per day, up to Rs 5 lakh on the company. Late PAS-3 attracts Rs 1,000 per day, up to Rs 1 lakh. Allotment without proper process can expose the company to refund obligations.

What this service creates next

Completing this is the start of a recurring set of obligations. Under an AdvisoNet plan these are tracked in your Compliance Passport and handled before they fall due.

  • Demat credit of new shares (ISIN) where applicable
  • FC-GPR filing for foreign investment
  • Updated MGT-7 or MGT-7A at year end

See AdvisoNet plans from ₹1,499 per month

Frequently asked questions

What is the difference between authorised and paid-up capital?

Authorised capital is the ceiling set in the MOA. Paid-up capital is what has actually been issued and paid for. You can only allot up to the authorised limit.

When is SH-7 due?

Within 30 days of the shareholder resolution approving the increase.

When is PAS-3 due?

Within 15 days of allotment for a private placement and within 30 days for other allotments such as a rights issue.

Fees shown are AdvisoNet professional fees exclusive of GST and government charges. Content is general information, not legal advice; applicability depends on facts and current law.