Authorized Capital Increase & Share Allotment (PAS-3 Filing)

• ✔ Authorized Capital Increase (SH-7 Filing)
• ✔ Share Allotment (PAS-3 Filing)
• ✔ Investment / Bank Loan Readiness
• ✔ Process, Documents & Timeline

🎯 Strategic View – Two Levels of Capital

Business owners often confuse these two:

• Authorized Capital – Maximum limit of shares (Legal permission) 👉 Increased through SH-7 filing
• Paid-Up Capital – Actual money invested (Real strength) 👉 Updated through PAS-3 filing

👉 Banks and investors focus on paid-up capital, not just authorized limit.

🏦 Bank Loan & Funding Advantage

Many businesses face loan rejection due to low capital.

👉 If your capital is only ₹1 lakh, banks may not approve higher loan limits.

👉 By increasing share capital:

• ✔ Improve Debt-Equity ratio
• ✔ Increase borrowing capacity
• ✔ Build financial credibility

📈 Growth & Investment Use Cases

• ✔ Startup funding / investor entry
• ✔ Business expansion
• ✔ Working capital infusion
• ✔ Conversion of director loan into equity

👉 Proper structuring ensures smooth investment and avoids future disputes.

⚠️ Critical Compliance Timeline

• ✔ SH-7 (Capital Increase) – within 30 days
• ✔ PAS-3 (Allotment) – within 15 days

👉 Delay leads to ₹1,000 per day penalty and legal complications.

🚀 Smart Strategy for Fast Growth

Instead of increasing capital frequently:

👉 Increase authorized capital to 5–10 times your requirement.

✔ Avoid repeated MCA filings ✔ Save time and cost ✔ Stay ready for future investments

⚖️ Rights Issue vs Private Placement

• Rights Issue – Offered to existing shareholders 👉 Can transfer rights (Renunciation)
• Private Placement – For new investors 👉 Requires valuation report

👉 We help choose the fastest and most cost-effective route.

Planning to increase capital or bring investors?

Get expert support for SH-7 & PAS-3 filing with proper legal structure.

📞 7019827351 | 📧 crp@prakashaandco.com

⏳ Timeline & Legal Limits

• ✔ SH-7 filing – within 30 days of EGM
• ✔ PAS-3 filing – within 15 days of allotment

👉 PAS-3 is critical — delay leads to ₹1,000 per day penalty.

🚀 Fast-Track Strategy (Our Approach)

We prepare SH-7 and PAS-3 simultaneously to avoid delays.

• ✔ Draft EGM + Board resolutions together
• ✔ Pre-check MCA compliance
• ✔ Ready documents before meetings

👉 This ensures faster update of MCA master data.

💡 Rights Renunciation – Faster Alternative

If you want to bring a new investor quickly:

• ✔ Use Rights Issue with Renunciation
• ✔ Avoid costly valuation report
• ✔ Faster execution than private placement

👉 Ideal for family / co-founder / internal restructuring.

🏦 Convert Loan into Equity (Smart Move)

If your company has director loans:

• ✔ Convert into share capital using PAS-3
• ✔ Improve balance sheet
• ✔ Increase loan eligibility

👉 Makes company “bank-ready” quickly.

Need quick capital increase and PAS-3 filing?

We handle SH-7 and PAS-3 together for faster approval.

📞 7019827351 | 📧 crp@prakashaandco.com

• ✔ Board resolution for capital increase
• ✔ EGM notice & shareholder resolution
• ✔ MOA copy (Capital Clause)
• ✔ AOA copy
• ✔ List of shareholders & shareholding pattern
• ✔ Bank statement showing share capital received
• ✔ Valuation report (if private placement)
• ✔ Allotment details (PAS-3 format)

💡 Easy Process for Clients

You don’t need to worry about all documents.

👉 Simply share available documents via:

• ✔ WhatsApp
• ✔ Email

👉 We will review and prepare all remaining documents for SH-7 and PAS-3 filing.

🎉 Free for Our Clients

✔ Capital Increase / PAS-3 Filing – FREE

👉 Applicable for companies registered with us.

🔗 Company Registration Bangalore

💼 Professional Fees

₹2,000 – ₹7,500

• ✔ SH-7 filing (authorized capital increase)
• ✔ PAS-3 filing (share allotment)
• ✔ Resolution drafting
• ✔ End-to-end MCA compliance

🧾 Only Filing Support

• ✔ SH-7 filing: ₹1,000 – ₹2,000
• ✔ PAS-3 filing: ₹500 – ₹1,500

💰 Additional Cost to Consider

• ✔ MCA filing fees (based on capital)
• ✔ Stamp duty (state-wise)
• ✔ Valuation report (if required)