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Annual Compliance for Private Limited Company

Annual Compliance for Private Limited Company: Annual Compliance for Private Limited Company - pratap nagar,india,delhi

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PROCEDURE FOR ISSUE OF SHARES THROUGH PRIVATE PLACEMENT

  INTRODUCTION Private placement can be explained as a means of raising capital by the companies without going for public issues. Public Issues like Initial Public Offering and Further Public Opening are means of raising capital by the companies. DEFINITION A private placement is a sale of stock shares or bonds to pre-selected investors and institutions rather than on the open market. It is an alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion. Condition for Private Placement under the Companies Act, 2013 Maximum Number of Persons:  An offer for private placement can be made to not more than 200 people in a financial year. Minimum amount of offer for an individual:  The value of the Offer per person shall not be less than INR 20,000 of ‘face value’ of securities. Persons to whom an offer can be made:  All offers shall be made only to those persons whose names are recorded by the company p...