MOA Alteration (Capital Variation)

MOA Capital Variation – Authorised and Paid-up Capital – From Rs 5,000

Increasing authorised share capital requires altering the MOA and filing with MCA. Paid-up capital increases via rights issue or bonus issue also require specific MCA e-forms and shareholder approvals. FinLegit handles capital variations from Rs 5,000.

Types of Capital Alteration

• Increase in Authorised Capital: Ordinary resolution + Form SH-7 + stamp duty on increased capital
• Rights Issue: Increase paid-up capital through offer to existing shareholders (Form PAS-3)
• Bonus Issue: Capitalisation of reserves into share capital (Form PAS-3)
• Sub-division or Consolidation of Shares: Change face value via special resolution + Form SH-7

Process for Authorised Capital Increase

1. Board resolution to convene EGM (or postal ballot)
2. Ordinary resolution passed by shareholders
3. Stamp duty paid on increased capital amount
4. Form SH-7 filed on MCA within 30 days

FAQ

Is stamp duty payable on authorised capital increase? Yes. Stamp duty rates vary by state, typically Rs 500-1,000 per Rs 1 lakh of increase in authorised capital.

Can authorised capital be reduced? Yes, but capital reduction requires NCLT approval and is a more complex process than increase.