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Allotment of shares

{to be intimated to concerned ROC within 30 days of the allotment of shares by company or thereafter with late fee}

23600 (including GST; applicable statutory/ government fees extra) for private placement

29500 (including GST; applicable statutory/ government fees extra) with valuation report 

4720  (including GST; applicable statutory/ government fees extra) for rights issue

 

A company can make an allotment of shares through a fresh issue, rights issue or by private placement. Whenever, any shares are allotted by a company it needs to file certain returns with ROC regarding the said allotment.

 

Private Placement

Private placement (or non-public offering) is a method under which securities are not sold to public, but rather through a private offering, mostly to a small number of chosen investors for raising capital. Investors involved in private placement are usually large banks, mutual funds, insurance companies and pension funds. In simple words, when shares are issued to persons other than existing shareholders, it is a case of private placement. The process of allotment of shares under private placement is very complex and requires expertise of a professional to ensure compliance.

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Package Includes

Form MGT-14

Form GNL-2

Form PAS-3

complete documentation as mentioned

Statutory fees

Documents

The filing of returns with ROC for allotment of shares under private placement involves extensive documentation. We will prepare the following required documents based on information received from you.

 

MGT-14

  • special resolution of members
  • explanatory statement

 

GNL-2

  • offer letter
  • board resolution approving offer letter
  • PAS 4&5 form
  • valuation report by CA (if opted for)
  • special resolution of shareholders
  • EGM minutes

 

PAS-3

  • valuation report by CA (if opted for)
  • board resolution for allotment
  • PAS 5 form
  • list of allottees

 

Steps involved in filing

  • MGT-14 is filed for special resolution
  • offer letter is approved by board of directors
  • GNL-2 is filed within 30 days of offer letter approval
  • allotment money is received in a separate bank account by company
  • allotment of shares is made within 60 days of money being received
  • PAS-3 is filed within 30 days of allotment

 

Rights Issue

Rights issue is an issue of shares by company to its existing shareholders in proportion to their existing shareholding. It is also a method to raise additional capital by a company. Instead of offering shares to public, the shares are allotted to existing shareholders. In case the shares are not offered in same existing proportion, then it becomes a private placement.

 

Documents

The following documents are required in order to file the return with ROC for rights issue-

  • list of allottees
  • board resolution for allotment of shares

 

Process

Our simple and robust process enables you to comply with this statutory requirement by click of a button. You just need to provide us the required information and make payment. Thereafter, we will take care of the rest. We will prepare and file the online form(s) on Ministry of Corporate Affairs website and will send you the complete form(s) along with the MCA challan once the filing is complete.

Note :-

  • Timeline starts from receipt of complete and accurate documents/ information
  • Timeline is subject to MCA site up and working
  • Extra charges will apply for an early turnaround
  • ROC fees will be charged as per actuals in addition to the service price
  • Late filing will attract additional fees from ROC