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How to allot shares in a company?

The company can allot shares in a company in different methods. The object of the allotment of shares is to raise funds towards equity share capital. Some times, the company may issue Sweat Equity shares to it's directors or employees at a discount or for consideration, for other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called. These types of allotments are mentioned herein below:

  • Private Placement.

  • Rights Issue.

  • Employee Stock Options.

  • Preferential Allotment

  • Issue of Bonus Shares.

  • Sweat Equity Shares.


What is Private Placement?

  • Private placement means an offer of securities or invitation to subscribe to the securities to a select group of persons by a company other than by way of public offer through issue of private placement offer letter provided the conditions specified under section 42 of the Companies Act, 2013 has to be met. A private placement offer can not be issued to more than 200 people.

  • For detailed information and documentation you can Click Here

What is Rights Issue?

  • It is a further issue of shares to an existing members of the company. Section 62(1) is the governing section for this issue and this issue is called as Rights Issue.

  • For detailed information and documentation you can Click Here

What is Employee Stock Option?

  • It is a further issue of shares to an existing employees under Employee Stock Option Scheme is called allotment of shares under Employee Stock Option. Section 62(1)(b) is the governing section for this issue.

  • For detailed information and documentation you can Click Here

What is Preferential Allotment?

  • It is an issue of further shares to persons other than existing shareholders and existing employees and called as preferential allotment. Section 62(1)(c) is the governing section for this issue.

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What is Issue of Bonus Shares?

  • A company can capitalise it's accumilated profits by issueing bonus shares to the existing share holders in proportion to the shares held by them. Section 63 is the governing section for this issue and this issue is called as Issue of Bonus Shares.

  • For detailed information and documentation you can Click Here

What is Issue of Sweat Equity Shares?

  • A company can issue shares to it's directors or employees at a discount or for consideration, for other than cash, for providing their know-how or making available rights in the nature of intellectual property rights or value additions, by whatever name called. This method is issuance of shares are called issue of Sweat Equity Shares. Section 2(88) defines sweat equity shares.

  • For detailed information and documentation you can Click Here


CompaniesHouse is an MCA Authorized Company Registered Agent in India. The object of the CompaniesHouse is to minimize the cost in registering Producer Companies throughout India.

FAQ

What is Allotment of Shares?

An issue of shares for a consideration of cash or otherwise cash is called allotment of shares.

Which form is required to be filed once we allot shares?

eForm PAS-3.

With in how many days we need to file this eForm PAS-3?

With in 30 days of allotment.

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What is Paid up Share Capital?

Paid up share capital is an amount which is deposited by the shareholders of the compnay in company's bank account towards share capital.

What are different types of allotment of shares?

Private Placement, Rights Issue, Employee Stock Options, Preferential Allotment, Sweat Equity Shares and Public Issue.

In howmuch time we can file eForm PAS-3?

30 minutes.

What is the government fee for return of allotment?

For one lakh authorised share capital company, the total government fee would be Rs. 300/-.

DOCUMENTS REQUIRED

  • List of Allottees
  • Board Resolution
  • Special Resolution if requried
  • EGM Notice & Explanatory Statement if required

PRICING & DELIVERABLES

Economy Plan

Return of Allotment

Rs2,999/InclTax
EMI OPTION
  • Return of Allotment
  • ICICI Current Banking Account
  • Company KIT
  • Free GST & Accounting Software
  • Free GST e-Way bill Software
  • All Business Documents free
  • Free book - Companies Act, 2013
  • Company Rules
  • Company Regulations
  • Company Circulars

Notes:

  1. The preferential allotment and private placement will be done at an extra cost of Rs. 10,000/-.
  2. The government fee and other incidental expenses have to be born by the client.
  3. If there are more than one allotment, for each allotment will be treated as one assignment.
  4. In case of Annual Compliance, the govt challans will be born by the client.
  5. Audit fee is at actuals on annual basis.

WHAT CLIENTS SAYS?

You are truly experienced in Company Registrations. Keep it up!

Ram Kumar Chilukuri Director, Anewa Engineering Pvt Ltd 02.06.2016

Thanks for your continuous support. God bless you!

Nrupesh CFO, Blujay Solutions Private Limited 14.06.2016

Thank you CompaniesHouse for saving in Income Tax!

Avtar Singh Managing Partner, Chetak Transporters 25.06.2016

We are surprised to get our Company registered in one day. Thanks to you guys!

Mohammed Fasiuddin Director, Avidus Engineering Private Limited 29.06.2016

Thank you for the initial discussion as we choose best business format!

Lakshmi Keerthi Reddy Director, Lavanar Sea Food Farming Private Limited 01.09.2016

Thank you CompaniesHouse for reminding on timely statutory compliance!

Rambabu Director, Cybervillage Solutions Pvt ltd 05.09.2016

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