pvtltd.co

Company · Money in

An investor is putting money in — what's the filing chain?

The short answer

A private placement is a sequenced chain, not one form: offer letter in PAS-4, a complete record of offerees in PAS-5, the special resolution filed in MGT-14, money into a separate bank account, allotment within 60 days of receiving it, and PAS-3 within 15 days of allotment. Share certificates follow within two months. If the investor is foreign, the FEMA layer (FC-GPR within 30 days of allotment) runs in parallel — a different regulator entirely.

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.

Valuation report

Registered-valuer report supporting the issue price — required before the offer

Section 42 read with Rule 14, Companies (Prospectus and Allotment of Securities) Rules, 2014

Share certificates

Issued within 2 months of allotment; stamp duty payable

Section 56(4)(b), Companies Act 2013

The sequence

  1. 1Check authorised capital headroom — increase via SH-7 first if needed
  2. 2Board + special resolution approving the offer; file MGT-14
  3. 3Issue PAS-4 offer letters and maintain the PAS-5 record
  4. 4Receive money in a separate bank account; allot within 60 days
  5. 5File PAS-3 within 15 days of allotment; issue share certificates within 2 months
  6. 6Foreign investor? File FC-GPR with RBI within 30 days of allotment

Questions founders actually ask

Can we take the money before allotting shares?

You can receive application money into a separate bank account, but allotment must happen within 60 days of receipt — otherwise the money must be refunded within 15 days, after which it attracts 12% interest and is treated as a deposit.

Can we advertise the round?

No. Private placement prohibits public advertisement or marketing of the offer — that line separates it from a public issue and breaching it is treated as one.

What changes when the investor is foreign?

Everything above still applies, plus FEMA: pricing guidelines, FC-GPR within 30 days of allotment, and KYC documentation through an AD bank. The annual FLA return follows every year the foreign holding exists.

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.