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Issues of Securities through Private Placement

What is Issue of Securities through Private Placement?

Issue of Securities through Private Placement occurs when a company makes an offering of securities to an individual or group of investors. As this offering does not qualify as public sale of securities. It does not have to be registered with the securities exchange commission. It is a cost-effective way of raising capital for small business without going public.

Process Flow

Step 1

Share requirements + documents

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

Pass the Board resolution

A resolution would be passed to brief out about details
Step 3

Sharing deliverables

We will share Resolution and other relevant documents relating to allotment of security , Filed e-Forms and Challans, Share Certificates and Valuation Report
Step 4

Filing of MGT-14

We will help with filing of e form MGT-14 with the Registrar of Companies
Step 5

Issue PAS-4 to Proposed investor

We will send offer to subscribe to the company securities through a private placement offer letter in Form PAS-4.
Step 6

Received amount in Company Bank account

Amount will be received in current account of company.
Step 7

Filing PAS-3

We will help in filing of e-form PAS -3 which needs to be filed within thirty days of allotment
Step 8

Issue Share certificate

Share Certificate would then be issued

Documents required

  • Copy of PAN of all investors
  • Valuation Report
  • Bank Statement (After receipt of investment amount)



  • Resolution and other relevant documents relating to allotment of security
  • Filed e-Forms and Challans
  • Share Certificates
  • Valuation Report

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

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.

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 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.

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.