Authorized Capital Increase

Increasing a company’s authorized capital is a strategic move to facilitate future growth and fundraising efforts. This process involves formally raising the maximum amount of share capital that a company is legally permitted to issue to its shareholders, as stipulated in its Memorandum of Association (MOA). It’s typically undertaken when a company needs to issue more shares to new or existing investors to finance expansion, new projects, or to convert debt into equity. The procedure involves obtaining shareholder approval through an ordinary resolution and subsequently filing specific forms, like Form SH-7, with the Registrar of Companies (ROC). A higher authorized capital signals greater capacity for financial expansion, enabling the company to tap into further investment opportunities and strengthen its balance sheet.