SHARE ALLOTMENT

Smooth and legally compliant share allotment services, board resolutions, and timely MCA filing support.

Get Free Consultation

What is Share Allotment?

Share Allotment is the process by which a company allocates new shares to existing shareholders or new investors (via rights issue, private placement, preferential allotment, or ESOPs). Under the Companies Act, 2013, the process requires board approval, shareholder approval, and the mandatory filing of Form PAS-3 (Return of Allotment) with the Registrar of Companies (ROC) within 30 days.

Key Benefits

  • MCA/ROC Compliance: Ensures all allotments conform to the Companies Act, 2013, avoiding severe penalties for late or incorrect filings.
  • Proper Documentation: Complete drafting of board resolutions, notice of general meetings, and offer letters (Form PAS-4).
  • Dilution Planning: Structured advice on share capitalization, authorized capital increases, and dilution impact.
  • Investor Trust: Clean, compliant ROC filings build confidence with new investors and financial institutions.

Frequently Asked Questions

Share allotment is the process by which a company issues new shares to investors in exchange for capital. It is done during fundraising rounds, rights issues, ESOP grants, bonus issues, or conversion of loans or debentures into equity.
After allotment, Form PAS-3 (Return of Allotment) must be filed with the ROC within 30 days. Delays attract significant penalties. We handle all post-allotment ROC and MCA filings punctually to keep you compliant.
Yes, shares can be allotted to foreign nationals under the FDI policy, subject to sectoral caps, pricing guidelines, and FEMA regulations. FC-GPR reporting to the RBI is required within 30 days of allotment.
A rights issue offers shares to existing shareholders first in proportion to their holdings. A private placement is an offer made to a select group of specific investors. Both require specific resolutions and regulatory filings.
For private companies, shares can be allotted at a price agreed by the parties. For foreign investment, FEMA regulations (DCF or NAV method) govern pricing. Listed companies must follow SEBI pricing guidelines. We advise on the correct methodology.