Allotment of Shares
Ensure a smooth, legally compliant allotment of shares with our expert-guided process. Quick, online, and hassle-free!
Understanding the Process of Share Allotment
When a company decides to issue new shares, it must follow a structured legal process known as Share Allotment Services. This ensures compliance with corporate regulations while enabling businesses to raise capital or bring in new investors.
Before proceeding with the Allotment of Shares, it is essential to check that the company’s Articles of Association (AOA) do not restrict the right to allot shares and that the authorized capital allows for the required issuance. The process can be time-consuming, requiring strict adherence to legal formalities and approvals at every step.
Under the Companies Act, 2013, shares can be allotted through:
- Rights Issue – New shares are offered to existing shareholders in proportion to their current holdings. A Letter of Offer is issued, and shareholders have 15 to 30 days to accept or renounce the offer. For private companies, this period can be reduced with the consent of 90% of shareholders.
- Private Placement – Shares are issued to a select group of investors, ensuring controlled ownership while complying with necessary regulations.
- Preferential Allotment – Shares are allotted to specific investors, whether existing shareholders or outsiders, either in exchange for cash or other consideration. The price of these shares is determined through a valuation report.
Our Online Allotment of Share service simplifies this complex process, ensuring a smooth, fully compliant, and hassle-free experience. Let our experts handle the legalities while you focus on growing your business.
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Step-by-Step Process for the Allotment of Shares
Our Share Allotment Services ensure a smooth and legally compliant process, helping businesses issue shares effortlessly. Here’s a simple breakdown of the steps involved in the Online Allotment of Share:
01. Arranging the Documents
Gather and submit the necessary documents as per the checklist provided. Ensuring all paperwork is in order helps streamline the allotment process.
02. Holding Board Meeting (BM) & General Meeting (GM)
- Convene a Board Meeting (BM) to approve the issuance of shares.
- If the shares are allotted through Private Placement or Preferential Allotment, a General Meeting (GM) must also be held for approval.
03. Filing Form MGT-14
For certain types of share allotments, Form MGT-14 must be filed with the Registrar of Companies (ROC). This form registers the special resolution passed by shareholders, approving the share issuance.
04. Convening BM for Share Allotment
- A final Board Meeting (BM) is held to approve the share allotment to the proposed investors.
- The company must file Form PAS-3 with the ROC as a return of allotment, completing the regulatory process.
With our Allotment of Shares services, we handle every step efficiently, ensuring full compliance with legal requirements.
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Documents Required for Share Allotment
To proceed with the Allotment of Shares, businesses must ensure that all necessary documents are in place. Our Online Allotment of Share service simplifies the process by helping you compile and submit the required paperwork.
Essential Documents for Share Allotment:
Articles of Association (AOA): Must not restrict the right to allot shares.
Authorized Capital Confirmation: The company must have sufficient authorized capital to issue the required shares.
Allottee Details:
- Full Name
- Father’s Name
- Complete Address with PIN Code
Number of Shares to be Allotted
Identity Proofs: - PAN Card (Copy)
- Aadhaar Card (Copy)
Having all these documents ready ensures a smooth, error-free, and legally compliant share allotment process.
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Checklist & Minimum Requirements for Allotment of Shares
Before proceeding with the Allotment of Shares, ensure that all legal and regulatory requirements are met. Below is the essential checklist to streamline the process:
- The Articles of Association (AOA) must not restrict the allotment of shares.
- The company’s Authorized Capital must allow for the required share issuance.
- Full Name of the allottee
- Father’s Name of the allottee
- Complete Address with PIN code
- Number of Shares to be allotted
- PAN Card copy of the allottee
- Aadhar Card copy of the allottee
Our Share Allotment Services ensure that all compliance requirements are met with ease. Let our experts guide you through a seamless and Online Allotment of Share process.
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