Raise your capital ceiling to issue more shares.
The authorised share capital is the maximum value of shares a company is permitted to issue, as stated in its Memorandum of Association. To bring in fresh investment or allot more shares to founders and investors, a company must first increase this ceiling if the existing limit is exhausted. The process involves checking the Articles for enabling power, passing an ordinary resolution in a general meeting, amending the capital clause of the MOA, and filing Form SH-7 with the MCA along with the applicable stamp duty and increased fees. Only after the authorised capital is raised can the company proceed to allot additional shares.
Growing companies planning to issue new shares to founders or investors.
Timelines and government fees are indicative and subject to processing by the relevant authority. Approval and its timing are decided by the authority and cannot be guaranteed.
No. It only raises the ceiling; you then separately allot shares up to the new limit.
Only if the Articles do not already permit an increase; then a special resolution is required.
Form SH-7 must be filed within 30 days of passing the resolution.
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