If your company is raising equity funding, creating an ESOP pool, or planning a bonus share issue, you cannot issue new shares beyond the authorized limit defined in Clause V of your MOA. Increasing your authorized share capital is a regulated corporate action governed by Section 61 of the Companies Act, 2013, requiring a board resolution, shareholder approval, and filing Form SH-7 within 30 days. State-specific stamp duties are applicable; for instance, in Karnataka, stamp duty is 0.5% of the increase amount for AOA (or standard slab rates), which can significantly affect your budget. Acclevate manages the entire process, calculating precise state stamp duties, preparing resolutions, and handling Form SH-7 filings on the MCA V3 portal to prevent delayed allotments.
We calculate state-specific stamp duties, including Karnataka's slab-based charges, to ensure your statutory payments are 100% accurate.
We draft, verify, and file Form SH-7 on the MCA V3 portal within 30 days of the resolution to avoid compounding interest or delays.
Our team prepares the amended Capital Clause of the MOA, adjusting nominal value and share counts to match your new capital structure.
We advise on structural headroom, ensuring you create enough authorized capital space for upcoming ESOPs or Series funding rounds.
Authorized Capital is the maximum amount of share capital a company is legally authorized to issue to shareholders, as specified in its MOA. Paid-up Capital is the actual amount of money received from shareholders against issued shares, which can never exceed the authorized limit.
In Karnataka, stamp duty on a capital increase is slab-based under the Karnataka Stamp Act, approximately 0.5% of the increase amount for the Articles of Association, in addition to standard MCA portal filing fees.
Late filing of Form SH-7 attracts percentage-based interest penalties on the unpaid stamp duty, along with recurring late fees on the filing form itself, which cannot be waived.
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