Equity Governance Framework · ValueReady Layer
Company Changes · Silo 7

Increase Authorised Share Capital

Before you can issue new shares in a funding round or equity pool expansion, your authorised capital has to allow for it. We handle the resolution, filing and MOA amendment together.

Authorised ≠ paid-up capital

Authorised capital is the ceiling; paid-up capital is what's actually issued - they're often confused.

Stamp duty applies

State-specific stamp duty is payable on the increase - rates vary significantly by state.

Needed before allotment

This must be completed before shares can be allotted in a funding round - plan the timeline early.

Special resolution required

Needs shareholder approval by special resolution, not just a board resolution.

How it works

STEP 1
Board resolution

Board approves the proposal to increase authorised capital.

STEP 2
EGM / special resolution

Shareholders approve via special resolution at a general meeting.

STEP 3
MOA amendment

Capital clause of the MOA is amended to reflect the new limit.

STEP 4
ROC filing (SH-7)

Form SH-7 filed with the Registrar along with the required fee and stamp duty.

Where This Fits

Part of Layer 4 - ExitReady, for both setup tracks.

Track 1
New Company Setup

We size your authorised capital at incorporation with enough headroom for your first equity pool and priced round, so this filing isn't needed on day one.

Start your setup →
Track 2
Existing Company Setup

Preparing for a new round or equity incentive top-up? We check headroom against your current authorised capital before term sheet negotiations conclude.

Run your diagnostic →
How We Support You

Timed to your round, not delayed by paperwork.

Filed ahead of allotment

We sequence this filing so it's complete before your term sheet closing date, not after.

Stamp duty calculated upfront

State-specific stamp duty is estimated before filing, avoiding last-minute surprises.

Sized for the next round too

We recommend headroom that anticipates your next raise, not just the current one.

Common questions

How long does increasing authorised capital take?

Typically 7–10 working days end to end, including the EGM notice period and ROC filing.

Does this affect our current shareholding?

No - increasing authorised capital only raises the ceiling; it doesn't dilute anyone until new shares are actually allotted.

How much headroom should we add?

We typically recommend sizing for your current round plus your equity pool plus a buffer for the next round, so you're not filing this again in 12 months.

Get your capital structure ready before the round closes.

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