An increase in authorized capital refers to raising the maximum amount of share capital a company is legally allowed to issue to shareholders. This process enables the company to raise additional funds for expansion, new projects, or business operations. The procedure involves passing a special resolution in a general meeting of shareholders, amending the Memorandum of Association (MOA) to reflect the new authorized capital, and filing the necessary forms with the Registrar of Companies (ROC), typically Form SH-7. The company must also update its records and shareholding structure to align with the new capital limit. Proper documentation and compliance with statutory requirements are critical to avoid regulatory penalties and maintain transparency with shareholders and authorities. Increasing authorized capital strategically allows a company to enhance its financial capacity, attract investments, and support long-term growth objectives while ensuring legal and corporate governance compliance.