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Funding Compliances

Elements of the Funding Compliance

  • Increase in authorized share capital, if needed
  • In case the authorized share capital of a company is not higher (enough) than the paid-up capital of the company to have provision for issue of fresh shares, the authorized share capital needs to be increased.
  • Issue of shares by Rights issue or Private placement of shares (mandatory)
  • Valuation certificate by a CA (mandatory)
  • Shareholder agreement (not mandatory)
  • Filing of FC-GPR with the RBI in case of money coming from outside India

Best suited for

  • Startups raising angel and seed-stage investment
  • Startups raising Series A investment
  • Small businesses raising equity investment from investors

Process Flow

Step 1

Share requirements + documents

Share your requirements and the list of documents mentioned below
Step 2

Increase in authorised share capital

If the it is required we will Increase the authorised share capital by passing board resolution and making changes in MoA
Step 3

Right issue or private placement of shares

Our professionals would handle issuing of new shares to the new shareholders in the company
Step 4

Valuation certificates

A company valuation report will be prepared by our CA and Valuation certificate will be provided
Step 5

Shareholders agreement

A new shareholders agreement would then be drafted
Step 6


If a company receives foreign investment then form FC-GPR (Foreign Currency Gross Provisional Return) has to filed with RBI
Step 7

Sharing deliverables

We will share Increase in authorized share capital , Issue of shares, Share certificates, Valuation certificate , RoC filings ,SHA and FC-GPR as deliverables


Documents required

  • DSC of any of the Directors of the company
  • KYC from bank for FC-GPR
  • Details of the investment


  • Increase in authorized share capital
  • Issue of shares
  • Share certificates
  • Valuation certificate
  • RoC filings
  • SHA
  • FC-GPR

Why choose Wazzeer?

  • One platform for all your requirements

    Incorporation is just the first step. Wazzeer supports you throughout your journey as an entrepreneur. Log in to get things done efficiently. A dedicated Account Manager offers the required human touch and acts as an advisor to you.

  • Experienced professionals

    Our professionals have at least 5 years of experience and have incorporated thousands of companies among them. The rich experience ensures that the process is smooth and right in the first go.

  • Defined process

    Over the last few years, doing over 500 incorporations, we have defined every step of the process. A virtual process is in place enabling us to deliver hassle free experience for you.

  • Cost Effective

    You pay what you see in the proposal. No surprises or hidden charges.

Frequently Asked Questions

Yes, the investor can use his Indian account to invest in the company as long as the source of that income lies in India. In case the amount is not earned in India, he will need to transfer the funds from his foreign account in foreign currency. In this scenario, the company has to report this to RBI through FC-GPR.

Stamp duty for Share Certificates varies from state to state. However, in majority of the states, the stamp duty is 1% of the investment amount.

Share Certificates are issued to the shareholders by the company after paying the requisite stamp duty. In case the paid-up capital of the company is less than Rs 50 lakhs, it is signed by the Directors of the company and for the cases where the paid-up capital is more than Rs 50 lakhs, a Company Secretary (on the payroll of the company) needs to sign it.

In case the company is using the private placement of shares method to raise capital, a separate bank account should be used to receive the investment. In case the company issues shares via Rights issue, the investment can come to the company’s primary bank account.

Share transfer is the transfer of share from an existing shareholder to the investor. The money, in this case, goes to the shareholders selling their shares. They will need to pay the applicable income tax. In the case of Rights issue or Private placement of shares, fresh shares are issued by the company in lieu of the investment amount.

Paid-up capital of a company is the amount for which the company has issued shares to its shareholders for the equity capital they have invested in the company (at book value). This has to be less than or equal to the authorized share capital of the company.

Even after the company being stricken off on account of filing Form-24, the liabilities of the Designated Partners exist for a further period of 2 years. In case any liability arises in this period of 2 years, Designated Partners are liable to pay the same.

The authorized capital of a company is the maximum amount of share capital that the company is authorized by its constitutional documents to issue to shareholders (at book value). A company can decide its authorized capital and can increase it as an when needed.

No, the process remains the same. However, for body corporate additional documents like the Charter documents of the Investing company, resolutions relating to investment intent and appointment of authorized person representing the body corporate will be needed.

In the case of the investor being a foreigner (non-Indian passport holder), the process remains the same. However, the KYC documents of the foreign investor should be notarized and apostilled. Additionally, if foreign funds are being transferred then it is the responsibility of the investee company to report it to RBI by filing FC-GPR.

  • Increasing the authorized share capital
  • Transfer of funds from the investor to the company
  • Issue of shares
    This can be done by either Private placement of shares or Rights issue. The choice of method depends on the increase in paid-up capital due to issue of shares to a single investor, as prescribed by the Company law.
    • Board resolutions and documents preparation
  • Valuation certificate
  • Singing of SHA and SSA
  • Issue of share certificates
  • Filing for FC-GPR, in case of investment from outside India