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procedure for allotment of shares 1st time


what is the procedure for allotment of shares in pvt. ltd. company fist time after incorporation.

 
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"IFRS CRAZY" Chartered Accountant

kindly refer SEBI guidelines for dat

 
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Dear Mr.Dipik, The following are the important procedural things for the allotment of shares : 1) Check whether the allotment of shares is in confirmity with Articles of Association and Memorandum of Association ( Check the Capital clauses – (E-Filing of Form 5 – if necessary) 2) In a Pvt Co – It is better to get a letter from the Application Holder before getting the Share Application Money (This may be needed for official records) 3) Get the Share Certificates printed ( With typing, common seal,etc) 4) Approval through Board Resolution or Circular Resolution and signing (with date) of Directors in the Share Certificates. 5) E-Filing of Form 2 and get the final approval from MCA 6) Pay the Stamp Duty as per Local Stamp Duty Act. 7) Update the Register of Members. 8) If there is any Foreign Inflow of money then FEMA and RBI compliances need to be made. I hope this will answer your requirements, any more clarifications from other members are solicited. Thanks and regards Harish

 
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Dear Mr.Dipik, The following are the important procedural things for the allotment of shares : 1) Check whether the allotment of shares is in confirmity with Articles of Association and Memorandum of Association ( Check the Capital clauses – (E-Filing of Form 5 – if necessary) 2) In a Pvt Co – It is better to get a letter from the Application Holder before getting the Share Application Money (This may be needed for official records) 3) Get the Share Certificates printed ( With typing, common seal,etc) 4) Approval through Board Resolution or Circular Resolution and signing (with date) of Directors in the Share Certificates. 5) E-Filing of Form 2 and get the final approval from MCA 6) Pay the Stamp Duty as per Local Stamp Duty Act. 7) Update the Register of Members. 8) If there is any Foreign Inflow of money then FEMA and RBI compliances need to be made. I hope this will answer your requirements, any more clarifications from other members are solicited. Thanks and regards Harish

 
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(Guest)

Procedure for allotment of shares in case of private company

 
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(Guest)

Private limited company has issued shares but pending allotment.How long shares can be kept like that without allotting it.

 
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Company Secretary & CA(Final)

Dear Gaurav, there is no specific provision and time limit  in the companies Act 1956 regarding allotment of  issued shares capital by a private company, but when ever foreign exchange involved in share application money, as per RBI guidelines it should be alloted with in 6 months otherwise the Forex should be refunded to the applicant.

 
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(Guest)

Is there any time limit within which the allotment of shares in case of a private limited company to the subscribers of the memorandum ? suppose the company was incorporated in july 07, can the shares be actually alloted in march '08 after actual bringing in of share capital (funds) by the promoter? or can the shares be alloted earlier to actual bringing in of capital by the promoter?

 
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Company Secretary & CA(Final)

Very good query, allotment should be done when we receive share application money/any asset only, on date of incorporation subsrciption to MOA is an agreement to be come member of the company it is no way related with allotment. Act is silent regarding the time limit to allot share.


Total thanks : 1 times

 
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Company Secretary


Originally posted by :Guest
"

When the MOA is signed Shares are deemed to be subscribed and allotted.It can be trated as paid-up only when the actual payment is made( no time limit prescribed).

Theoritically the minimum amount which should be paid -up at the time of Incorporation is Rs. 1.00 Lac even though the ROCs are not insisting on the same.You will have to make it paid -up before the end of financial year for finalising accounts and filing returns.

You may also run the risk of losing Limited liability!

 

 

"


 

 
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