in Corporate Law
Asked September 08, 2021

Issue of shares by Private Limited Company

  • 1 Answer

I'm planning on starting a private limited company. May I know how many shares can be issued by such a company? Is there a restriction for it? Also, how can these shares be issued?

Answer 1

According to the Companies Act, 2013, a private limited company can issue shares to only upto 200 shareholders. After weighing all options and deciding on the number of shares you will be issuing, the procedure to issue shares consists firstly of getting the approval of the Board. Then, all necessary documents like share certificates and shareholder agreements must be prepared and made ready. Depending on the type of shares that you're issuing, you will be required to file certain forms with the Registrar of Companies. Once it is made certain that you've complied with all rules and submitted the necessary documents, the procedure will be complete. Once it's done, you must keep a copy of all the documents, especially the share certificates.

Agree Comment 0 Agrees 10 months ago

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