Issue of Shares in India – From 4,999 + GST

Share Allotment & Issuance Filing

Expert Advisory on Companies Act Compliance

Legal Guidance for Post-Issuance Filings

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Issue of Shares in India

Are you a business looking to issue shares in India? Patron Accounting is here to assist you in issuing shares and completing all related statutory compliances with speed, clarity, and expert guidance.

Issuing shares is a critical requirement under the Companies Act, 2013, for raising capital, allotting equity, or bringing in new shareholders. It ensures compliance with corporate governance norms, proper documentation, and legal reporting obligations. At Patron Accounting, we specialize in helping startups, SMEs, and established companies complete the share issuance process—from board and shareholder resolutions to filing with the Ministry of Corporate Affairs (MCA)—ensuring full compliance.

We understand that managing corporate formalities can be complex. Our experienced consultants simplify the share issuance process, help avoid errors, and ensure timely filings so you can focus on growing your business confidently. Whether you are issuing shares for the first time or restructuring your equity, Patron Accounting offers reliable, professional, and end-to-end support at every step.

Join the numerous companies that trust Patron Accounting to handle their share issuance efficiently and compliantly.

Why is the Issue of Shares Essential?

Issuing shares is a legal requirement under the Companies Act, 2013, for companies looking to raise capital, allot equity, or bring in new shareholders. It ensures proper corporate governance, compliance with statutory provisions, and accurate reporting with the Ministry of Corporate Affairs (MCA). Without following the legal process, companies risk penalties, rejection of filings, and disputes with shareholders.

Proper share issuance involves preparing board and shareholder resolutions, share subscription agreements, and filings such as PAS-3 or SH-7 forms with the MCA. These documents act as proof of lawful allotment and record ownership, safeguarding the rights of both the company and its shareholders.

Most importantly, issuing shares legally protects the company from future legal disputes, unauthorized transfers, and shareholder conflicts. It enhances corporate credibility, builds investor confidence, and fosters a transparent and responsible business environment. For any growing company, following the correct share issuance process is a non-negotiable part of lawful and sustainable operations in India.

How Can the Issue of Shares Drive Your Business Growth?

Legal and Regulatory Compliance

Issuing shares ensures your company complies with the Companies Act, 2013, and other statutory provisions. Proper compliance reduces the risk of penalties, legal disputes, and rejection of filings with the Ministry of Corporate Affairs (MCA).

Attracting Investors and Capital

A legally issued share structure boosts investor confidence, making it easier to raise capital for expansion, product development, or strategic initiatives. Proper issuance demonstrates transparency and governance, which attracts long-term investors.

Enhanced Corporate Credibility

Issuing shares correctly signals that your company is compliant, transparent, and well-governed. This improves credibility with shareholders, business partners, financial institutions, and regulatory authorities.

Reduced Risk of Disputes

Legal share allotment protects the company and its shareholders from conflicts related to ownership, unauthorized transfers, or equity dilution. It reduces future legal and financial risks.

Simplified Record-Keeping and Reporting

Accurate share issuance enables easier maintenance of share registers, board resolutions, and filings like PAS-3 or SH-7. This keeps your corporate records audit-ready and simplifies regulatory reporting.

No Repeated Approvals

Once shares are issued in compliance with the Companies Act, no repeated approvals are required unless there is a structural change. This minimizes administrative burden and allows management to focus on growth.

Circumstances Requiring Share Issuance in India

Raising Capital from Investors

Any company looking to raise funds through equity must issue shares to new investors. This includes private placements, rights issues, or public offerings, ensuring legal allotment and proper reporting to the MCA.

Increasing Authorized Capital

Companies planning to increase their authorized capital must issue additional shares to comply with statutory limits and reflect the change in corporate filings.

Bringing in New Shareholders

When new partners or investors join the company, shares must be legally issued and allotted, accompanied by proper board and shareholder resolutions to safeguard rights and ownership.

Employee Stock Options or ESOPs

Companies offering employee stock options or equity incentives must issue shares to eligible employees, ensuring compliance with the Companies Act provisions and proper documentation.

Startup or SME Funding Rounds

Startups and SMEs issuing shares during seed, angel, or venture capital rounds must comply with statutory filings, safeguarding legal and investor interests.

Conversions and Restructuring

During mergers, demergers, or restructuring of shareholding patterns, companies must issue shares to reflect the new ownership structure accurately.

Step-by-Step Guide to Issuing Shares in India

Document Collection

Share your company documents—such as MOA, AOA, board resolutions, share applications, shareholder lists, and valuation reports (if applicable)—via email or securely upload them to our encrypted client portal. No office visit is required; everything is handled digitally. Our compliance team verifies all documents to ensure they meet MCA and Companies Act requirements.

Approval and Resolution Preparation

Once verification is complete, our team prepares the necessary board and shareholder resolutions approving the issuance of shares. We ensure all documents accurately reflect authorized capital, shareholder rights, and allotment details to avoid delays or legal issues.

Filing with MCA

After resolutions are passed, filings such as PAS-3 or SH-7 are submitted on the Ministry of Corporate Affairs (MCA) portal. Our team monitors the submission process to ensure all statutory requirements are met and any queries from MCA are addressed promptly.

Share Allotment Confirmation

Once approved, shares are legally allotted and recorded in the company’s register of members. Share certificates are issued to the subscribers, and filings with MCA confirm the allotment. This step legally recognizes the new shareholders and enables your company to raise capital or restructure equity seamlessly.

Documents Checklist for Share Issuance in India

To legally issue shares in India, you will need the following documents:

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    Memorandum of Association (MOA) – Valid and updated MOA of the company.

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    Articles of Association (AOA) – Current AOA reflecting share capital and rights of shareholders.

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    Board Resolution – Approving the issuance of shares, authorized capital increase, or new allotments.

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    Share Application Forms – Completed forms from new or existing shareholders subscribing to shares.

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    List of Shareholders – Updated register of all existing and new shareholders with details.

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    Valuation Report (if applicable) – Certificate from a registered valuer to determine the fair value of shares.

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    Certificate of Incorporation and Business Licenses – Proof of company registration and legal operation.

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    PAN Card of Company / Directors – Essential for all statutory filings.

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    KYC of Shareholders – Aadhaar, PAN, or passport copies of all subscribing shareholders.

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    Bank Statement / Proof of Payment – Evidence of receipt of funds for shares allotted.

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    Digital Signature Certificate (DSC) – Of the authorized signatory for MCA filings.

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    Board & Shareholder Resolutions – Any additional approvals required for special allotments or ESOPs.

Please Note: Ensure all documents are clear, accurate, and up to date. Patron Accounting provides full support in verifying, organizing, and filing your share issuance documents to ensure smooth regulatory compliance and legal protection.

Why Choose Patron Accounting for the Issue of Shares in India?

Expert Guidance

Expert Guidance

Our corporate specialists provide personalized advice to help you understand legal requirements, compliance obligations, and best practices for issuing shares under the Companies Act, 2013.
End-to-End Assistance

End-to-End Assistance

From document collection to MCA filings, we manage the full share issuance process so you can focus on growing your business.
Fast Turnaround Time

Fast Turnaround Time

We ensure accurate and timely filing of board resolutions, share allotment forms, and statutory documents to avoid delays in approvals or allotments.
Error-Free Filing

Error-Free Filing

Our team rigorously checks all applications, resolutions, and forms to eliminate mistakes that could trigger queries or rejections from the Ministry of Corporate Affairs.
Affordable Pricing

Affordable Pricing

We offer transparent, cost-effective packages with no hidden fees—ideal for startups, SMEs, and growing companies raising capital.
Dedicated Support Team

Dedicated Support Team

Our responsive support team is available at every step to answer questions, provide real-time updates, and assist with future equity or compliance requirements.

Your one-stop partner for Business Registration

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Issue of Shares Customised by States and Cities

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Issue of Shares in Delhi

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Issue of Shares in Haryana

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Issue of Shares in Maharashtra

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Issue of Shares in Mumbai

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Issue of Shares in Pune

Frequently Asked Questions

Have a look at the answers to the most asked questions.

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Yes. Filing PAS-3 with the Registrar of Companies is mandatory to record any share allotment.

Yes, private limited companies commonly issue shares to raise capital, but only through approved methods like rights issue, preferential allotment, or private placement.

Yes, shares may be issued at a premium, subject to proper valuation and compliance with Section 52 of the Companies Act.

For preferential allotment and private placement, valuation by a registered valuer is mandatory; for rights/bonus issue, it may not be required.

The company must update the Register of Members (Form SH-1) after every allotment.
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