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Capital and charges

Increase authorised capital

The next allotment needs a higher ceiling.

The short answer

If the articles already allow it, section 61 is an ordinary resolution and SH-7 within 30 days. If the articles must change, that part is a special resolution under section 14 and an MGT-14.

A company limited by shares. An LLP has contribution, not authorised capital, and does not file SH-7.

VerifiedAct-sourced — Sections 61, 64 and 14. Section 8 where the company holds that licence.

Ordinary resolution. Do not file a special resolution only because the figure is large.

Step by step

  1. 1

    Ordinary resolution

    If the articles already allow an increase, a special resolution is not required just because the figure is large.

  2. 2

    SH-7

    Within 30 days. State stamp duty is collected on this form. It is not in the MCA fee table.

  3. 3

    Sign, upload, pay

    A director submits the web form at mca.gov.in as a business user. The SRN appears in My Application. Download the PDF, sign it with the DSC already associated to the DIN, DPIN, PAN or membership number on the form, upload that PDF against the same SRN, and pay.

Forms

  • SH-7 — Notice of the alteration.
  • MGT-14 — Only where there was a special resolution.

Papers

  • Altered memorandum
  • Resolution
  • Stamp-duty proof where the State asks for it on the form

Where this filing fails

  • SH-7 does not allot shares. Allotment is PAS-3.
  • A section 8 company altering its memorandum needs the Central Government’s previous approval under section 8, before this is treated as an ordinary capital increase.