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.