pvtltd.co

Company · Money in

We want to buy back shares — what's the process?

The short answer

A buyback under Section 68 starts with board or shareholder approval, then SH-9 (declaration of solvency) before the offer opens. After completion, file SH-8 within 30 days and maintain the SH-10 register. Statutory caps apply: up to 25% of paid-up capital plus free reserves, a 10% board-only route, and debt-equity must stay at 2:1 post buyback. If share capital is reduced, SH-11 follows the NCLT order.

The paperwork nobody tells you about

Statutory formats that never touch the MCA portal — but an ROC inspection or due diligence will ask for every one of them.

SH-10 register

Register of shares bought back

Rule 17(12), Companies (Share Capital and Debentures) Rules, 2014

The sequence

  1. 1Pass a board or shareholder resolution approving the buyback within Section 68 limits
  2. 2File SH-9 — declaration of solvency — before commencing the buyback offer
  3. 3File MGT-14 within 30 days of passing the buyback resolution
  4. 4Complete the buyback, maintain the SH-10 register, and file SH-8 within 30 days of completion
  5. 5If share capital is reduced, file SH-11 within 30 days of the NCLT order

Do it with us — or check it yourself first

Questions founders actually ask

What are the limits on a share buyback?

Under Section 68, a company can buy back up to 25% of its total paid-up capital and free reserves. Up to 10% can be done by board resolution alone. Post buyback, the company's debt-equity ratio must not exceed 2:1.

When is SH-9 filed?

SH-9 — the declaration of solvency for a share buyback — must be filed before commencement of the buyback offer under Section 68(6) and Rule 17(1)(d) of the Companies (Share Capital and Debentures) Rules 2014.

What is filed after the buyback is complete?

SH-8 — the buyback return — is due within 30 days of completion under Section 68 and Rule 17(13). The company must also maintain a register of shares bought back in Form SH-10 under Rule 17(12).

Last verified 2026-08-24 against MCA V3 records and ICSI reference material. Form-level deadlines and penalties live on the linked form pages and update there.