Share Allotment Procedure

Hello. I have recently joined a family owned business and have no experience in management of ROC procedures.

My question is to do with the share allottment procedure. I have been given to understand that before due formalities can be executed with ROC regarding allotment, "Share Application Form" and "Share Application Fee" are to be recieved from the persons to whom shares are to be issued?

What are the implications for the company and its directors, if Form 2, 20B have all been filed but no evidence of Share Application Form nor Share Application Fee can be found????? Can the Share Application Fee be accepted as cash (amount one lac rupees)

yrs Confused


Company Secretary and Compliance Officer



Return of allotment is required to be submitted u/s 75 by filing form-2 with concerned Registrar of Company.


Procedure for allotment of equity shares


  1. First convene board Meeting for allotment of equity shares and pass necessary resolution for allotment.
  2. Download form-2 from MCA Site  
  3. Fill form-2 and attach list of allottee.
  4. Get form-2 certified from practicing CS/CA and upload the same on MCA Site.




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Company Secretary and Compliance Officer

Form-2 is required to be filed with in 30 days of allotment of shares.

If you fail to file ROC form within time then there is no need to worry at all. You may file the same at a later date with additional fee. 


Thank you Ankur. I have three more questions.

1) IF there is an employee of the company whose salary is outstanding for a number of years, can this employee be given shares of the company in lieu of salary? What is the procedure in that case?

2) If Form 2 is being submitted, does the board resolution accompany it as an attachment?

3) If Form 2 has already been submitted, is there any procedure by which its contents can be revised if there is an indication that some mistake has occured?


Dear sir, How long will it take to get form 2 approved on MCA portal? I have filed 15 days back still it is in pending status..

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