ROC Fees for Increase in Authorized Capital (Check out)
A company that is doing well in its sector often outgrows the numberof shares it is willing to share with its shareholders. Do you know that a company can share a limited amount that is predefined at the time of the company’s registration at the Registrar of Companies.
So, when a company wants to increase the limit of its authorised capital, a fee has to be paid to the Registrar of Companies.
Expanding capital is always good for both the company and the economy. It is a sign of its expansion and positive growth. In due time, every company has to increase its authorised capital share, depending upon their growth rate.
This helps the companies gain more credit from banks and other financial entities.
This step is usually taken by companies when they need a huge chunk of money for their expansion.
This article talks about ROC filing fees, ROC fees for an increase in authorised capital, its effect on ROC and the company, and which forms are required to be submitted at ROC for an increase in authorised capital.
What is RoC Filing Fee?
The ROC filing fee is the amount a company has to pay for the filing of any eform with the ROC. The e-filing includes the filing of the following forms by a company to the Registrar of Companies as per the Companies Act, 2013 or any previous legislations:
- Form for Annual Filing (AOC-4);
- Form For Annual Return (MGT-7);
- Appointment of Auditor (ADT-1);
- Filing of Special Resolutions (MGT-14);
- Return of Allotment (PAS-3);
- Increase in Authorised Share Capital (SH-7);
- Form for Incorporation of Company (Spice+);
- Form for Closure of Company (STK-2); etc
The details of ROC filing fees in India are discussed in the blog ROC filing fees.
Now, let’s dive into the fees for increasing authorised capital.
So, when a new company is registered, it is registered for a fixed number of capital, members, etc. If there is a need to increase the authorised capital of the company, an additional fee has to be paid by the company to register or report the increase in the authorised share capital.
The company can report the change in the capital, the company’s management or any other change by filing the relevant eform and paying the government fee for the same.
What is the Fees for Increasing Authorized Capital?
The fees for the increase in the authorized capital of a registered company are is shared below:
MOA Registration Fees:
|S.no||Nominal Share Capital (In INR)||Fee Applicable (In INR)||OPC and Small Companies|
|Fixed||For every 10,000 or part thereof||Fixed||For every 10,000 or part thereof|
|1||Up to 1,00,000||5000||NA||2,000||NA|
|2||More than 1,00,000 up to 5,00,000||5,000+||400||2,000||NA|
|3||More than 5,00,000 up to 10,00,000||21,000+||300||2,000||NA|
|4||More than 10,00,000 up to 50,00,000||36,000+||300||2,000||200|
|5||More than 50,00,000 up to 1,00,00,000||1,56,000||100||2,000||100|
|6||More than 1,00,00,000||2,06,000+||75||2,000||75|
- At the time of increasing the authorized capital, where the fees calculated on existing or revised authorized capital exceeds Rupees 2,50,00,000/- (rupees two crore and fifty lakh), such fees shall be restricted to Rupees 2,50,00,000/- (rupees two crore and fifty lakhs). Accordingly, the maximum fee payable by a company for registration of MOA shall in no case exceed Rupees 2,50,00,000/- (rupees two crore and fifty lakhs).
- For increasing the authorized share capital, the difference between fee applicable on the increased share capital and fee applicable on existing authorized capital, at the rates prevailing on the date of filing the notice, shall be payable.
- However in case of ‘OPC’ or ‘Small Company’ increasing the paid up capital beyond Rupees fifty lakhs, the fee payable shall be equal to the difference of fee applicable on increased authorized capital as per normal company rates and fee applicable on existing authorized capital as per fee rate applicable to OPC or Small Company.
Also, the stamp duty charges for an increase in authorised capital vary in all states. So, check twice before calculating the charges.
The stamp duty rates of different states in India are given in the following annexure issued by the MCA on its official portal. Have a look here.
The company can be an OPC, a small company, or a big company. The complete details of What is the Cost of Registering a Company in India? is given in the blog ROC filing fees. Check it out!
Forms to be Submitted at ROC for filing Increase in Authorised Capital
Whether to increase the authorised capital share of a company or not is a cumulative decision taken by the company’s Board of Directors. A set percentage or value is put forth by the BOD. After the percentage is accepted by 50% or more of the members of BOD, the e-filing process can be begun by passing the ordinary resolution in the shareholders meeting and by submitting the following form in ROC.
Form SH-7: This form contains the details of the increase in the authorised capital.
After the filing, the Registrar of the companies will analyse the request to increase the capital share. If no discrepancies are found in it and it is to the satisfaction of the ROC, the request will be accepted by the ROC.
Is ROC Filing Mandatory Every Year?
ROC filing is also known as the Annual e-filing because it is filed every year. As per the guidelines of the Registrar of Companies, the ROC must be aware of all financial changes happening inside the company each year.
This enables the ROC to keep its records up- to- date. Tracking the company’s records helps the MCA avoid any evasion of taxes, forgery, money hoarding, money laundering, illegal investments, etc.
The ROC also has to send the annual report to the MCA every year showing the number of filings done, revenue encashed by the company and by the ROC through fees, the number of companies active, and closed, etc.
FAQ: ROC Fees for Increase in Authorised Capital
Which resolution is passed for alteration of share capital?
Special/ordinary resolution is required to be passed depending on the type of alteration of share capital.
Which RoC form for alteration of share capital?
Form SH-7 is required to be filed with ROC for alteration of share capital.
How long does sh 7 approval take?
If the share capital is being increased independently by the company; then the form is auto approved.
What documents required for sh-7?
The documents required for SH-7 are as follows:
- Board Resolution
- Special/ordinary resolution (as the case may be)
- Altered MOA.
Keep in mind that the specific steps and requirements may vary depending on the jurisdiction and the company’s governing laws. Consulting legal and financial experts is advisable before initiating such a process. Our experts at Instafiling can assist you with any questions you have.
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