SECP Authorized Capital Increase: Fee Calculator, Slab Rates & Expert Filing Tips

Why SECP Charges a Fee on Authorized Capital — and How It’s Calculated

Here’s why many business owners are caught off guard by this SECP fee — and what it really means. When you’re incorporating your company with the Securities and Exchange Commission of Pakistan (SECP), you’ll encounter a charge related to your authorized capital. This is the maximum amount of capital the company is allowed to raise by issuing shares. Think of it as the ceiling for your company’s potential shareholding.

According to the Companies Act 2017 – SECP PDF, every company is legally required to declare and pay a fee based on its authorized capital — whether or not shares are issued. SECP levies this as a one-time or differential fee, and the exact amount is determined by a sliding slab system linked to the size of your authorized share capital, as outlined in the SECP Capital Fee Schedule. This fee is separate from the paid-up capital, which is the actual amount of money shareholders have invested. Understanding this initial fee structure is crucial, as similar charges will apply later if you decide to increase your authorized capital. This structure applies regardless of your filing month — unless SECP issues a revised fee schedule.

Here’s What Legally Happens When You Increase Your Authorized Capital in Pakistan

Many businesses assume they only pay once for authorized capital — here’s the hidden cost they often miss. Let’s say your tech startup initially set its authorized capital at PKR 100,000. As you grow and plan to bring in significant investors, you realize you need to increase this to PKR 1,000,000 to accommodate their investment. So, what exactly happens legally and financially with the SECP?

Increasing your authorized capital isn’t just about changing a number. It triggers a formal process with the SECP. As per Section 85 of the Authorized Capital Rules – Companies Act Section, every increase in authorized capital must be declared to the SECP, and the corresponding fee must be deposited based on the revised capital structure. Importantly, increasing authorized capital doesn’t automatically mean more cash in the bank; that’s determined by your paid-up capital through the issuance of new shares. To increase your authorized capital, your company must first pass a board resolution, followed by a shareholders’ resolution in a general meeting. Subsequently, you are required to file an updated return with the SECP using Form 7 and submit other relevant documents as per the SECP Form 7 Filing Instructions.

How SECP Calculates the Fee

The good news is that SECP charges the fee only on the increased portion of your capital. In our example, going from PKR 100,000 to PKR 1,000,000 means you’ll pay the differential fee on PKR 900,000. This ensures you’re not penalized for the capital you already declared and paid for during incorporation. Understanding these steps and the associated costs is vital for financial planning as your company expands. This process applies year-round — unless SECP updates their capital fee structure, which is rare.

2 Real Examples That Show Exactly How SECP Capital Fees Are Calculated

Wondering how much the SECP will charge you when you increase your authorized capital? Let’s walk through two quick examples to make sense of their fee structure, which involves a base fee plus variable slabs. Remember, the SECP fee is always calculated on the increase in your authorized capital, not the total new amount. Legal practitioners often recommend calculating this fee before passing a resolution — to avoid delays in SECP processing due to underpayment.

Startup Example: PKR 100,000 to PKR 1,000,000

Imagine a small tech startup that initially registered with an authorized capital of PKR 100,000. As they secure their first major funding round, they need to increase this to PKR 1,000,000.

• Increase in Capital: PKR 1,000,000 (New) – PKR 100,000 (Old) = PKR 900,000
• The SECP will then apply its tiered fee structure to this PKR 900,000. The exact breakdown of these tiers will be explained in the next section, but it involves different percentage rates for different portions of this PKR 900,000. The final fee will be the sum of the fees calculated for each applicable slab. For this example, let’s estimate the total fee to be around PKR 7,500 (please note: this is an illustrative figure; actual fees depend on SECP’s current slab rates as per the SECP Capital Fee Schedule PDF.

SME Expansion: PKR 500,000 to PKR 2,000,000

Consider a growing manufacturing company that initially had an authorized capital of PKR 500,000. To facilitate further expansion and potential future investment, they decide to increase it to PKR 2,000,000.

• Increase in Capital: PKR 2,000,000 (New) – PKR 500,000 (Old) = PKR 1,500,000
• Again, the SECP’s slab-based fee will be applied to this PKR 1,500,000. Different percentages will apply to various portions of this amount based on the SECP’s official schedule. For this scenario, let’s approximate the fee to be around PKR 12,000 (again, this is an estimate based on a hypothetical slab structure).

These calculation methods stay the same unless SECP revises their official fee slabs — which rarely happens. This is where the SECP Authorized Capital Fee Calculator becomes essential — so you don’t have to guess the amount.

How SECP Charges You: Full Breakdown of the Capital Fee Slabs You’ll Pay

Here’s the part many companies overlook — SECP uses a slab-based system, not a flat rate. Understanding these tiers is crucial for accurately predicting your incorporation or capital increase costs. SECP charges an authorized capital fee based on capital slabs. The higher the declared capital, the higher the fee — using fixed and incremental brackets. Here’s a breakdown: These rates are derived from SECP’s official capital fee schedule issued under the Companies (Registration Offices) Regulations, 2018.

The SECP’s fee structure involves a fixed base fee for each capital range, plus an additional incremental fee for every thousand rupees (or part thereof) exceeding the lower limit of that slab. This means that as your authorized capital grows, the rate you pay on each additional segment of capital may decrease. The table below summarizes the current slab tiers. For the most up-to-date information, please refer to the official SECP fee schedule.

This slab structure is valid for 2025 — but always check for updates, as SECP may revise rates occasionally. These slabs are already built into our Company Incorporation Fee Calculator, so you don’t need to calculate manually unless you want to verify the structure.

Free SECP Capital Fee Calculator: Instantly See What You’ll Pay

Don’t want to decode fee slabs manually? This free tool does it for you instantly. To estimate your SECP authorized capital fee, enter your current and proposed capital into the calculator. It will show you the differential fee automatically. This tool is based on official SECP slab structures and updated regularly to reflect any changes in rates.

Here’s how to quickly estimate your fee:

• Enter your current authorized capital in the first field.
• Enter your proposed authorized capital in the second field.
• Click the "Calculate" button.
• The estimated differential fee will be displayed instantly.

This tool reflects the SECP’s tiered slab system behind the scenes, so you don't need to worry about manual calculations. Keep in mind that this calculator provides an estimate for the authorized capital fee only. It does not include other SECP filing fees associated with incorporation or capital increase, which we will cover in the next section. This tool works for any filing month — it auto-adjusts for the current 2025. This tool saves you time and helps avoid misfiling or underpaying SECP charges. You might also find our Company Incorporation Fee Calculator useful for understanding initial setup costs.

The Hidden Charges Most Companies Miss When Increasing Capital with SECP

Many founders think paying the SECP fee means they’re done — but here’s what else usually comes up... The SECP fee isn’t the only charge you may face when increasing your company’s authorized capital. Being aware of these additional costs can prevent unwelcome surprises during the filing process. Most legal consultants recommend budgeting an extra 15–25% on top of SECP’s capital fee to cover advisory and documentation costs.

Here’s a breakdown of potential additional charges:

What additional costs are involved in increasing authorized capital with SECP?

In addition to the capital fee, SECP charges Form submission fees, service charges, and possible late surcharges. Many companies also pay legal drafting and courier fees.

Always ask your consultant for an all-inclusive quote to avoid surprise costs. These charges apply regardless of the time of year — but fee updates are occasionally issued by SECP. Always verify before filing. You might also want to consult our SECP Document Checklist to ensure you have everything prepared.

7 Common Mistakes That Lead to SECP Capital Rejection (And How to Avoid Them)

Even experienced companies get tripped up here — let’s prevent the mistakes before they cost you. According to SECP consultants, over 30% of capital increase rejections are due to simple document errors — not technical issues. Spotting these early can save you from SECP rejection, penalty fees, or unnecessary back-and-forth. These mistakes apply regardless of your company type or season — they’re rooted in SECP’s ongoing compliance rules.

Mistake #1: Submitting Form 7 with Incorrect Dates Ensure all dates on Form 7 (resolution date, filing date) are accurate and consistent with your company records. Double-check before submission.

Mistake #2: Forgetting to Attach the Required Board Resolution A properly worded and duly passed board resolution authorizing the capital increase is mandatory. Always include the original resolution with the filing. Refer to the SECP Form 7 Guidelines PDF for specifics.

Mistake #3: Underpaying the SECP Fee Calculate the fee precisely using the official slabs. Underpayment will lead to rejection. Use the SECP calculator or consult the fee schedule.

Mistake #4: Using an Expired or Incorrect Digital Signature Certificate (DSC) The director or authorized person signing the forms must have a valid DSC registered with SECP. Verify its validity before use.

Mistake #5: Failing to Update the Memorandum and Articles of Association (MOA/AOA) if Required If the authorized capital clause in your MOA needs amendment, ensure this is done and filed correctly, often as a separate process or concurrently.

Mistake #6: Increasing Capital Without a Clear Business Need While not a filing error, increasing capital excessively without a strategic reason can raise scrutiny or seem unnecessary. Plan your capital needs realistically.

Mistake #7: Missing the SECP's Filing Deadline Ensure you submit Form 7 and all supporting documents within the stipulated timeframe after passing the resolution to avoid potential late filing surcharges. Consider using a Checklist for SECP Capital Filing to stay organized.

6 Signs It’s Time to Increase Your Company’s Authorized Capital

Thinking of raising funds or onboarding a partner? You may need to increase your authorized capital first. There’s no legal limit on how often you can increase capital — but here’s when it makes sense. Most corporate advisors recommend revisiting your capital structure annually — especially if growth or funding is on the horizon. This guidance applies year-round, regardless of fiscal cycle or SECP filing period.

Legal and Operational Reasons:

• Need to issue new shares: If you want to bring on new investors or issue stock options and you've reached your current authorized limit, an increase is necessary.
• Requirement from investors: Potential investors may stipulate a certain authorized capital level as a condition of their investment.
• SECP minimum threshold change: While rare, if SECP regulations change the minimum authorized capital, you'd need to comply.

Strategic and Business Reasons:

• Preparing for expansion: Increasing authorized capital can signal to stakeholders that your company is poised for growth and has the capacity for future investment.
• Getting ready for funding rounds: A higher authorized capital can make your company more attractive to larger investment funds.
• Showing financial strength on paper: A larger authorized capital can sometimes be perceived as a sign of a more substantial and stable enterprise.

Trigger Type	Example	Why It Requires Capital Increase
Legal	New share issuance	Cannot issue beyond current ceiling
Strategic	Funding round prep	Investors demand higher limits
Operational	Adding shareholders	Need room in share register

Still unsure? Your lawyer or business advisor can help assess if it’s the right time. You might also find it helpful to review the SECP Share Capital Guidelines for more detailed information.

How Legal Experts Help You File SECP Capital Changes (Without Errors or Rejection)

Worried about getting the fee wrong or filing rejected? Here’s how experts take the guesswork out. Most consultants handling SECP filings work with dozens of businesses per month — giving them insight into exactly what documents trigger delays or approval. SECP rules change rarely — but experts stay updated year-round, so you don’t have to.

Navigating the SECP’s requirements for increasing authorized capital can be complex. Legal or corporate consultants offer valuable assistance to ensure a smooth and error-free process. Here’s how they typically help:

• Preparing or reviewing Form 7: Experts ensure all sections are filled accurately, with the correct company details and proposed capital figures, minimizing chances of rejection due to incomplete or incorrect information.
• Drafting board and shareholder resolutions: They prepare legally sound resolutions that comply with the Companies Act 2017, ensuring all necessary clauses are included and correctly worded.
• Estimating and verifying the correct SECP fee: Consultants use their knowledge of the current slab structure to accurately calculate the fee, helping you avoid underpayment or overpayment.
• Submitting filings online or via courier: They handle the technical aspects of online submission through the SECP eServices Portal Guide or manage physical document dispatch if required, ensuring timely delivery.
• Ensuring compliance with Companies Act 2017: Their expertise ensures that all steps taken align with the latest regulations, reducing the risk of legal complications or penalties.

Typically, in a consulting call, they’ll ask for your incorporation documents, current capital, proposed capital, and whether you’ve updated your MOA/Articles.

Task	DIY Approach	With Expert Consultant
Form 7 Drafting	Use template or guess	Custom-drafted per case
Resolution Preparation	May miss technical language	Legally compliant, vetted text
Fee Calculation	Manual via slab	Auto-calculated and validated
Filing & Submission	User files on eServices	Expert files and tracks
SECP Queries Handling	Must research/resolve solo	Consultant handles follow-up

Even if you’re confident filing yourself, it never hurts to double-check with someone who does it every day. Consider reaching out for a consultation via Contact for Capital Filing Assistance.

Your Top Questions About SECP Capital Increases – Answered Simply

Still unsure about something? These are the top questions our readers ask most often.

Can I increase authorized capital in SECP myself?

Yes, it’s possible to file directly through SECP eServices if you’re confident with Form 7 and the necessary board/shareholder resolutions. However, many companies seek legal counsel to ensure accuracy and avoid potential rejection.

How long does SECP usually take to approve Form 7 for capital increase?

The processing time can vary, but typically it takes around 3-7 working days from the date of successful online submission, provided all documents are complete and the fee is correctly paid.

Do I need a lawyer to increase my company's authorized capital?

While not legally mandatory, engaging a legal consultant can significantly reduce the risk of errors, ensure compliance with the Companies Act 2017, and save you time in the long run.

📌 Trusted Tip: SECP’s system is strict about document format and capital fee accuracy — double-check every field before submitting.

What is the fee for increasing authorized capital with SECP?

The fee is calculated based on a slab system applied to the increase in your authorized capital. Refer to the official SECP fee schedule or use the online calculator for an estimate.

What documents are required to increase authorized capital?

Typically, you'll need Form 7, a certified true copy of the board resolution authorizing the increase, and a special resolution passed by the shareholders (if applicable based on your Articles).

What happens if I don't pay the correct SECP fee?

Underpayment will lead to rejection of your filing, and you'll have to resubmit with the correct fee, causing delays. Overpayment is generally not refunded promptly.

Can I increase my authorized capital multiple times?

Yes, there is no legal restriction on the number of times you can increase your authorized capital, as long as you follow the correct procedures and pay the applicable fees each time.

These answers remain relevant unless SECP announces a change in capital fee structure or filing rules — which is rare. For a comprehensive guide, you might find our SECP Capital Filing Guide helpful.

Before You File: 6 Final Tips to Finish Your SECP Capital Increase Smoothly

Here’s your quick action list to wrap up your SECP capital increase with confidence. Even experienced CFOs cross-check SECP filings with legal advisors to avoid rejections and delays. These tips apply any time of the year — SECP processes rarely change, but accuracy always matters.

Before you click ‘submit’ on the SECP Capital Filing Portal:

• Verify the authorized capital difference: Ensure the increased amount matches your resolutions and business needs.
• Calculate your SECP fee accurately: [Revisit Calculator Tool] to confirm the exact fee based on the current slabs.
• Double-check your resolutions: Make sure both board and shareholder resolutions are correctly dated, signed, and attached.
• Complete Form 7 meticulously: Pay close attention to all dates, company details, and capital figures.
• Attach all required documents: Don't forget any supporting documents, like the resolutions and any MOA/AOA updates if applicable.
• Choose your filing method: Decide whether you'll file online or via courier and follow the correct procedure. You might find our [Download Filing Checklist] helpful.

What should I do before filing SECP Form 7?

Verify authorized capital difference
Calculate SECP fee using correct slab
Prepare board/shareholder resolution
Fill Form 7 without date errors
Attach required documents
File through SECP portal or advisor

Still unsure about any step? Don’t guess — get professional help before you file.