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After fund received by investors till what time we can allot shares
08-Dec-2023 (In Corporate Law)
Our startup has raised some funding over last 3 months however we have not yet closed the round. Whats the maximum time till we can postpone actual issuance of shares and relevant filings.
There are various compliances which depends on the nature of the funding. In case of Angel Investment you need to file Annexure - 6 with the RBI within 30 days from the receipt of the money along with a copy of FIRC and a covering letter.
The completion of the procedure of issuance of equity instruments is to be done within 180 days of the receipt of the inward remittance or date of debit . That is also when the entire reporting gets completed i.e. Form FC - GPR filing. In case you fail to do so due to some unforeseen circumstances you have alternative remedies.
Feel free to contact for further legal assistance.
The completion of the procedure of issuance of equity instruments is to be done within 180 days of the receipt of the inward remittance or date of debit . That is also when the entire reporting gets completed i.e. Form FC - GPR filing. In case you fail to do so due to some unforeseen circumstances you have alternative remedies.
Feel free to contact for further legal assistance.
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Adv. Ayantika Mondal
Bangalore | 400+ Answers
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Dear Sirs,
Shares must be issued within 60 days of receipt of fundings. If not issued, the company needs to return it within 15 days. Otherwise, it is treated as deposits.
Regards,
Sadanand
Bangalore
Shares must be issued within 60 days of receipt of fundings. If not issued, the company needs to return it within 15 days. Otherwise, it is treated as deposits.
Regards,
Sadanand
Bangalore
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Adv. Sadanand Naik
Bangalore | 200+ Answers
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You should refer to the term sheet for deciding the maximum time by when you can allot shares. You should also refer to the Share subscription agreement to decide on the tie frame. Get in touch with a good corporate lawyer near you you shall be able to guide you through the process.
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Adv. Abheek Saha
Bangalore | 100+ Answers
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