Increasing a company’s authorized capital involves a structured process to meet legal requirements. First, the board of directors must convene a meeting to pass a resolution approving the increase. Following this, the company must seek approval from its shareholders through an extraordinary general meeting (EGM).

After obtaining shareholder approval, the company must file Form SH-7 with the Registrar of Companies within 30 days. This form includes details of the increased authorized capital, a copy of the board and shareholders’ resolutions, and the amended Memorandum of Association (MOA) reflecting the new capital structure.

This increase allows the company to issue more shares, facilitating additional funding and supporting expansion plans. Proper documentation and adherence to timelines are essential to ensure compliance and to leverage the benefits of increased capital for the company’s growth and development.