Find
Authorised share capital is the maximum shares a company can issue. Most startups incorporate with ₹1L authorised capital (1,00,000 shares at ₹1 face value). This is always too low.
Startup ecosystem · Incorporation
Authorised share capital: how to set it and why it matters
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Provisions
Companies Act 2013, Sec 61 | Form SH-7
Analysis
Before issuing ESOP, raising a round, or onboarding a co-founder, you must increase authorised capital, requiring a board resolution, special resolution, SH-7 filing, and state ROC stamp duty (varies: typically ₹1,000–₹10,000 per increase). Set it right from day 1: Incorporate with ₹10L–₹50L authorised capital (10L–50L shares at ₹1 face value). The govt stamp duty on initial incorporation is lower than subsequent increases.
Close
Talk to a Savvy for the exact next step on your case.
Connect now
A Savvy replies in minutes.
Fixed price before you pay. Your Savvy is paid only after you accept the work.
General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.