Share Capital Increase – Issue of New Shares for Growth
For a company looking to expand, raise funds, or restructure its equity, increasing share capital is a vital step. Share Capital Increase involves raising additional capital by issuing new shares to existing or new shareholders, in compliance with the Companies Act, 2013.
Transparent Packages
Complete Allotment Support.
- Resolution Drafting
- PAS-3 Filing
- MGT-14 Filing
- Share Certificates
At FilingHUB, we provide professional assistance to ensure your capital increase is completed smoothly, legally, and efficiently. Expand your business, attract investors, and stay compliant with legal regulations. 👉 Contact FilingHUB today to increase your company’s share capital efficiently and legally.
What is Share Capital Increase?
Share Capital Increase refers to raising a company’s authorized or paid-up capital by issuing additional equity shares. Companies may increase their capital to:
• Raise funds for expansion or working capital
• Offer shares to new investors
• Provide shares to employees under ESOPs
• Restructure shareholding or ownership
• Meet regulatory or compliance requirements
This process requires Board approval, shareholder consent, and proper filings with the Registrar of Companies (RoC).
**Legal Provisions for Share Capital Increase**
The Companies Act, 2013 regulates share capital increases under:
• Section 61 – Further issue of share capital
• Section 62 – Issue of shares to existing shareholders (Right Issue)
• Section 42 – Private placement of shares
• Section 13 – Alteration of MOA for capital clause
• Section 62(1)(c) – Issue to employees under ESOP scheme
Procedure for Increasing Share Capital
Board Approval
The Board of Directors approves the proposal for increasing authorized or paid-up capital.
Shareholder Approval
A Special Resolution is passed in the General Meeting approving the capital increase.
Alter MOA
The capital clause in the MOA is altered to reflect the new authorized capital (if applicable).
Issue of Shares
Shares are allotted to existing or new shareholders as per the approved resolution.
Filing with RoC
Filing of Form PAS-3 (Allotment), MGT-14 (Resolutions), and SH-7 (if Authorized Capital Increase).
Certificate of Allotment
The company issues share certificates to new shareholders, completing the process.
Documents & Compliance Details
Documents Required
- Board Resolution approving capital increase
- Special Resolution passed in General Meeting
- Altered Memorandum of Association (MOA) reflecting new capital
- Shareholder consent letters (if required)
- Form PAS-3 for allotment of shares
- Form MGT-7 / MGT-14 for ROC filing
- Proof of share payment (bank statements, receipts)
- Digital Signature Certificates (DSC) of directors
Time Required
- The process usually takes 7 to 15 working days, depending on the type of issuance and MCA approvals.
Why Choose FilingHUB?
FilingHUB offers end-to-end assistance for share capital increase with: Expert corporate compliance support, Accurate documentation and filings, Seamless ROC processing, Transparent process and pricing, Guidance on right, preferential, and bonus issues. Increase Your Company’s Capital with FilingHUB: Expand your business, attract investors, and stay compliant with legal regulations. 👉 Contact FilingHUB today.
Key Features of a Share Capital Increase
Rights Issue
Issuing shares to existing shareholders in proportion to their holdings.
Bonus Issue
Issuing shares to existing shareholders for free from reserves.
Preferential Allotment
Issue of shares to a select group of investors at a predetermined price.
Public Issue
Raising capital from the public via an IPO (for public companies).
ESOP Issue
Shares allotted to employees under Employee Stock Option Plans.
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