To increase authorised capital in Mumbai, a company files Form SH-7 within 30 days of the members' resolution and pays Maharashtra stamp duty of 0.3% of the increase, capped at ₹1 crore, together with the MCA fee, all online. That rate has applied since 14 October 2024. For a registered office in Mumbai City or Mumbai Suburban, the jurisdictional registrar is ROC Mumbai-I.
How much is Maharashtra stamp duty on an increase in authorised capital?
It is 0.3% of the increase, with a ceiling of ₹1 crore, under Article 10 of Schedule I to the Maharashtra Stamp Act. The Maharashtra Stamp (Amendment) Act 2024, Mah. Act IX of 2025, raised it from 0.2% with a ₹50 lakh ceiling, with effect from 14 October 2024.
| Increase in authorised capital | Duty before 14 October 2024 (0.2%) | Duty now (0.3%) |
|---|---|---|
| ₹5 lakh | ₹1,000 | ₹1,500 |
| ₹24 lakh | ₹4,800 | ₹7,200 |
| ₹50 lakh | ₹10,000 | ₹15,000 |
| ₹1 crore | ₹20,000 | ₹30,000 |
| ₹10 crore | ₹2,00,000 | ₹3,00,000 |
Three Maharashtra points to keep in mind:
- One article, two charges. Article 10 also charges 0.3% on share capital when a company is incorporated, so a Mumbai company pays at the same rate when it is formed and each time it grows. The incorporation fee and stamp duty calculator covers the first charge.
- The ceiling rarely matters. At 0.3%, duty reaches ₹1 crore only on an increase of about ₹333 crore.
- An open question for very large companies. Article 10 does not settle whether duty already paid on earlier capital counts towards the ₹1 crore ceiling, so Ofin confirms that case in writing.
How is the duty paid for a Mumbai company?
With SH-7 itself, on the MCA portal. The form works out the stamp duty from its state-wise rules and you pay it with the SH-7 fee, so there is no separate stamp paper to buy in Mumbai for this increase.
The catch is the table behind that calculation. The annexure to MCA's own SH-7 instruction kit still prints Maharashtra's duty as ₹1,000 for every ₹5 lakh of increase or part of it, with a ₹50 lakh ceiling. On a ₹24 lakh increase, that basis gives ₹5,000, against ₹7,200 under the current Article 10. Before you pay, compare the duty the form shows with 0.3% of your increase, which is what Maharashtra law now charges.
Which registrar deals with SH-7 for companies in Mumbai, Thane and Navi Mumbai?
Neither Mumbai ROC examines the form itself. Since 16 February 2024, SH-7 has been processed at the MCA's Central Processing Centre, in non-STP mode, so it is checked before approval. Jurisdiction still follows the registered office: since 16 February 2026, Mumbai City and Mumbai Suburban fall under ROC Mumbai-I, and Thane, Palghar and Raigad, including Navi Mumbai, under ROC Mumbai-II.
So a company registered in Andheri and one registered in Thane come under different registrars but pay the same 0.3%, because the duty follows the state of the registered office and all of these districts are in Maharashtra. The whole exchange stays online through the MCA portal.
Worked example: a Goregaon startup before its seed round
Shorebird Analytics Private Limited, registered in Goregaon, was formed with ₹1 lakh authorised capital. Before a seed round it moves to ₹25 lakh, an increase of ₹24 lakh. The members pass the resolution on 4 December 2026, so SH-7 is due by 3 January 2027.
| Item | Not a small company | OPC or small company |
|---|---|---|
| SH-7 fee | ₹76,000 | ₹30,000 |
| Maharashtra stamp duty (0.3% of ₹24 lakh) | ₹7,200 | ₹7,200 |
| Total government cost | ₹83,200 | ₹37,200 |
| Added for each month late, first six months | ₹1,900 | ₹750 |
Shorebird can use the right-hand column only while its paid-up capital is within ₹10 crore and its turnover within ₹100 crore, the small company limits from 1 December 2025, and only if it is not a holding or subsidiary company. The late fee is the smaller worry: section 64(2) also allows a penalty of ₹500 a day, up to ₹5 lakh for the company. Run your own figures in the authorised capital increase calculator with Maharashtra selected.
Example. After SH-7, Shorebird allots shares worth ₹12,00,000 to its seed investor. Stamp duty on the issue is 0.005%, so ₹60. If the shares are in demat form the depository collects it on allotment; if they are physical, the company pays it to Maharashtra, the state of its registered office.
Raise it once or in stages? The Maharashtra arithmetic
For Maharashtra duty, staging makes no difference to the total, because 0.3% is charged on each increase and the ₹1 crore ceiling is far away for most companies. What staging changes is when you pay and how many SH-7 filings you make.
Take a Kurla trading company at ₹10 lakh that expects to need ₹50 lakh within three years:
- In one step to ₹50 lakh, Maharashtra duty is ₹12,000.
- In two steps, ₹10 lakh to ₹20 lakh now and ₹20 lakh to ₹50 lakh later, the duty is ₹3,000 and then ₹9,000, the same ₹12,000 in all.
The SH-7 fee behaves the same way on one fee table, since each filing pays only for the slice it adds. Staging therefore defers cost rather than saving it, while each extra SH-7 means another board meeting, general meeting and filing.
Common mistakes with SH-7 stamp duty in Maharashtra
Most Maharashtra errors come from old rates and wrong assumptions about jurisdiction, not from the law itself.
- Budgeting at 0.2%. Quotes and board notes prepared before 14 October 2024 understate the duty by a third.
- Paying the printed figure without checking it. The per-₹5-lakh basis in MCA's SH-7 annexure no longer reflects Article 10.
- Assuming a Navi Mumbai or Thane company comes under ROC Mumbai-I. Since 16 February 2026 it is ROC Mumbai-II, though the duty is the same.
- Forgetting the issue duty. A small Mumbai company issuing physical certificates pays 0.005% of the issue value to Maharashtra.
- Treating the 30 days as flexible. They run from the members' resolution, and the penalty runs daily after that.
Selling existing shares rather than issuing new ones is a different process, with duty at 0.015% on the price; see share transfer in Mumbai. The national increase authorised capital guide covers the resolution, documents and allotment rules in full.
How Ofin's Mumbai team handles it
Ofin's CAs, CSs and legal professionals draft the board resolution, notice and members' resolution, prepare the altered memorandum, check the Maharashtra duty the form computes and file SH-7, with the government fee and duty at actuals. It is 100% online with a reply within 24 hours, or meet us at Shanti Bhuvan, Mulund West. Fees start at ₹9,999, inclusive of GST. Get a fixed-price proposal.
