Increase Share Capital Services

STAMP DUTY

State-wise Stamp Duty for Authorized Capital Increase

State	Rate	Maximum Cap	Example (₹1 Cr Increase)
Maharashtra	0.15%	₹50,00,000	₹15,000
Delhi	0.15%	₹25,00,000	₹15,000
Karnataka	0.10%	₹30,00,000	₹10,000
Tamil Nadu	0.15%	₹25,00,000	₹15,000
Gujarat	0.15%	₹25,00,000	₹15,000
Uttar Pradesh	0.10%	₹25,00,000	₹10,000
West Bengal	0.15%	₹25,00,000	₹15,000
Rajasthan / MP / Punjab / Haryana	0.10%	₹25,00,000	₹10,000

Stamp duty is charged on the increase amount only (new authorized capital minus old). Non-payment attracts a penalty of up to 10 times the unpaid amount under the Indian Stamp Act, 1899.

TIMELINE

Timeline for Authorized Capital Increase

01

Board Meeting & Notice

1–2 days for board resolution and preparation of EGM notice.

02

EGM Notice Period

21 clear calendar days (statutory minimum under Section 101) — the main timeline driver.

03

EGM + Stamp Duty

1 day for EGM + 1–2 days for stamp duty payment via e-stamping.

04

SH-7 Filing & RoC Approval

File within 30 days of EGM. RoC typically processes in 2–3 working days. Total end-to-end: 20–25 working days.

PENALTIES

Penalties for Late or Non-Compliance

01

Late SH-7 Filing

₹1,000 per day for the company (maximum ₹25 lakh) and per officer in default (maximum ₹5 lakh) under Section 64(2).

02

Issuing Beyond Authorized Capital

Issuing shares beyond authorized capital is void. Penalty of ₹10,000 plus ₹1,000 per day of continuing default under Section 450.

03

Non-Payment of Stamp Duty

Penalty of up to 10 times the unpaid stamp duty amount under the Indian Stamp Act, 1899.

04

Pending Annual Filings

Pending AOC-4 or MGT-7 may trigger SH-7 rejection. Clear all prior-year filings before starting the capital increase.

WHY CHOOSE US

Why Corporate Mart?

01

Expert SH-7 Filings

Specialists experienced in EGM documentation, MoA amendment, stamp duty calculation and MCA V3 portal submissions.

02

Complete End-to-End Package

Board resolution, EGM notice & minutes, amended MoA, stamp duty guidance, SH-7 filing, MGT-14 (if needed) and updated Master Data.

03

Free Stamp Duty Calculation

Accurate state-wise stamp duty calculation for all major states as part of the service package.

04

Transparent Pricing

Clear with dedicated professional support. Government fees and stamp duty charged separately at actuals with no hidden charges.

FAQ

Frequently Asked Questions

Verify AoA, pass a board resolution, issue 21-day EGM notice, pass ordinary/special resolution at EGM, pay state stamp duty on the increase amount, file Form SH-7 (and MGT-14 if special resolution) within 30 days of the EGM resolution. The process typically takes 20–25 working days.

Corporate Mart provides transparent, tailored assistance based on your entity structure and state requirements. Contact our expert team for a detailed proposal. Government fee for SH-7Government and statutory fees depend on the entity structure and state requirements. Contact our expert team for a detailed proposal. Stamp duty is 0.10%–0.15% of the increase amount, subject to state caps.

Late filing attracts ₹1,000 per day for the company (maximum ₹25 lakh) and per officer in default (maximum ₹5 lakh) under Section 64(2). File within 30 days of the EGM resolution date.

It depends on your Articles of Association. Section 61 allows increase by ordinary resolution unless the AoA requires a special resolution. If a special resolution is passed, Form MGT-14 must also be filed.

Yes. An OPC can increase authorized capital with the written consent of the sole member. MCA fees for OPC/small companies start at ₹2,000, which is significantly lower than regular companies.

Stamp duty is charged only on the increase amount (new authorized capital minus old authorized capital), not on the total. Rates range from 0.10% to 0.15% depending on the state, with maximum caps.

Issuing shares beyond authorized capital is void under the Companies Act. The company and every officer in default face a penalty of ₹10,000 plus ₹1,000 per day of continuing default under Section 450. Always increase authorized capital before any such allotment.

End-to-end timeline is typically 20 to 25 working days. The 21-day statutory EGM notice period under Section 101 is the main driver. RoC processing of SH-7 usually takes 2–3 working days after filing.