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Issue of Shares in India

Raise Capital by Issuing Shares under Companies Act, 2013

Issue of Shares – Starting at ₹4,999 + Govt Fees

If your company wants to raise funds, bring in investors, or expand operations, one of the most common ways is through the issue of shares.

Under the Companies Act, 2013, a company can issue shares to existing shareholders or new investors by following proper legal procedures and filing required forms with the Registrar of Companies (ROC).

Issuing shares helps you:

Raise funds without taking loans

Bring in new investors or partners

Expand business operations

Improve company valuation

Drafting & Documentation

Board & Shareholder Resolutions

ROC Filing (PAS-3)

End-to-End Compliance Support

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    What is Issue of Shares?

    Issue of shares means offering ownership in your company in exchange for money.

    When someone buys shares:

    They become a shareholder (owner)

    They get rights like voting and dividends

    The company receives funds for business

    In simple terms:

    👉 You give a part of your company, and in return, you get investment.

    Types of Share Issuance in India

    1. Rights Issue

    Shares are offered to existing shareholders in proportion to their holding.

    2. Private Placement

    Shares are issued to a select group of investors (like friends, family, or VCs).

    3. Preferential Allotment

    Shares are issued to specific investors at a pre-decided price.

    4. Bonus Shares

    Free shares given to existing shareholders from company reserves. Each method has different compliance requirements.

    When is Issue of Shares Required?

    A company may issue shares in the following situations:

    Raising funds for business expansion

    Bringing in new investors

    Startup funding rounds

    Issuing ESOPs or equity incentives

    Converting loans into equity

    Increasing paid-up capital

    Examples:

    Startup raising seed funding

    Business expanding into new markets

    Company bringing in strategic investor

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    Documents Required for DIR-3 KYC

    PAN Card

    Aadhaar Card

    Passport (mandatory for foreign nationals)

    Personal Email ID (unique)

    Mobile Number (unique, OTP required)

    Digital Signature Certificate (DSC)

    All details must match MCA and Income Tax records.

    Step-by-Step Process for Issue of Shares

    Step 1

    Board Meeting

    • Approve issue of shares
    • Decide type, price, and terms
    • Approve notice for shareholders

    Step 2

    Shareholder Approval (if required)

    • Pass Special Resolution (for private placement/preferential issue)

    Step 3

    Offer Letter & Acceptance

    • Issue offer letter to investors
    • Receive application money

    Step 4

    Allotment of Shares

    • Company allots Shares
    • Issuance of Share Certificates within 60 days from allotment

    Step 5

    File Form PAS-3 with ROC

    • Must be filed within 15/30 days of allotment
    • Details of shareholders and shares issued

    Step 6

    Update Statutory Registers

    • Update Register of Members
    • Maintain proper records

    Documents Required for Issue of Shares

    Board Resolution

    Shareholder Resolution (if applicable)

    Offer Letter (PAS-4 for private placement)

    List of Allottees

    Valuation Report (if required)

    Share Certificates

    Cost of Issue of Shares in India

    Government Fees:

    Starting at

    Rs.4,999/-+ GST and Govt. Fees

    ROC filing fee for PAS-3

    Call us on +91 9167123781 / 82

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    Professional Fees:

    Starting at

    Rs.4,999/-+ GST and Govt. Fees

    Drafting documents

    Valuation (if required)

    Compliance & filing

    Call us on +91 9167123781 / 82

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    You focus on growing your business — we’ll handle the legal compliances and regulatory complexities

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    Key Compliance Points

    Shares must be issued at fair value (in certain cases)

    Filing of PAS-3 is mandatory

    Delay may attract penalties

    Proper documentation is essential

    Funds must be received through banking channels

    FAQs – Issue of Shares in India

    Thinking of starting your business in India? Below are the most common questions about Private Limited Company registration — from documents to compliance and timelines.

    It is the process of assigning shares to investors after receiving money.

    Form PAS-3 is filed for allotment of shares.

    Yes, in cases like private placement or preferential allotment.

    Yes, through private placement or preferential allotment.

    Usually 5–10 working days, depending on documentation.

    Yes, in case of bonus shares, but not in normal allotment.

    Yes, for certain types like private placement.

    Penalties and non-compliance issues may arise.

    Yes, subject to FEMA and RBI regulations.

    Yes, as long as it complies with legal requirements.

    Issue Shares with Full Compliance

    Raise funds confidently and grow your business with proper legal support.

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