Issue of Shares by a Company

A company limited by shares (Private Limited, OPC and public limited) can issue shares and fund capital requirements of the company. The method of issue of shares are classified as preferential issue of shares, right issue


In India, Companies Act,  2013 discusses the procedure of allotment of shares and it is read with Companies (Prospectus and Allotment of Securities) Rules, 2014.

Section 23 of the Companies Act, 2013 discusses the option to issue shares. In order to issue share the company needs to be a registered company. There are four ways in which shares can be issued:

  1. Public issue (includes Initial Public Offering and Further Public Offering)

  2. Private Placement

  3. Rights issue

  4. Bonus issue

Where a Public company can issue shares through Public Issue, Private Placement, Rights issue or Bonus issue, a Private Company may issue shares by way of Rights issue or Bonus issue and Private Placement.



Verify Articles of the Company

Articles of the Company governs any internal procedure for issue of shares of a private limited than covered in Companies Act

Board Meeting

Call a board meeting to take decision on issue of shares.

Requirements


Authorised Capital

The authorised capital must be within the limit

Received Amount

Get amount from

Documents Required


6000



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How it works

  • Board meeting

  • Documentation

FAQ

Frequently Asked Questions on Issue of Shares by a Company

Who can issue shares of a company?

Only board of directors by passing resolution can issue shares of a private limited company. The powers of board must be within the authority granted by General meeting

Is advance to be received before issue of shares ?

Yes, before issue of share

How many days required to process?

It dependents on the type of process involved

Issue of Shares by a Company

Rs.5199.00

Rs.6000.00

Rs.18000.00

Rs.5999.00

Rs.4999.00

Rs.4999.00

Rs.3999.00

Rs.6999.00

Rs.5999.00

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