Streamlined Preference Shares Issuance

Streamlined Preference Shares Issuance

  • Structure Investor-Friendly Capital - Legally Compliant Preference Share Issuances

Custom packages available starting from

₹1,999/-

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Here's How It Works

Step 1

Agree on preference share terms - dividend rate, l...

Agree on preference share terms - dividend rate, liquidation preference, conversion terms, anti-dilution, and redemption rights.

Step 2

Amend the Articles of Association to create the pr...

Amend the Articles of Association to create the preference share class.

Step 3

Obtain board resolution and shareholder special re...

Obtain board resolution and shareholder special resolution approving the issuance.

Step 4

Execute Preference Share Subscription Agreement.

Execute Preference Share Subscription Agreement.

Step 5

File PAS-3 with MCA; issue share certificates; fil...

File PAS-3 with MCA; issue share certificates; file FC-GPR for foreign investors; update cap table.

What Our Clients Say

“Lawxygen provides top-tier support. Registration timelines were strictly followed with full transparency.”

Rahul Verma

Rahul Verma

Director, TechNexus

Here's What You'll Need

Structure Investor-Friendly Capital - Legally Compliant Preference Share Issuances

  • Agreed term sheet or SHA specifying preference share terms
  • Board resolution and shareholder special resolution
  • Amended Articles of Association creating preference share class
  • Preference Share Subscription Agreement
  • Valuation report (for FEMA compliance)
  • Updated cap table

Why Should I Use Lawxygen for Registering a Private Company Online in India?

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Overview - preference shares issuance Registration

Preference shares are a class of shares that have a preferential right over ordinary equity shares in terms of dividend distribution and repayment of capital on winding up. They can be cumulative or non-cumulative, redeemable or irredeemable (non-redeemable preference shares are not permitted in India), and convertible or non-convertible. Preference shares are widely used in VC and PE funding rounds to provide investors with downside protection while giving founders equity upside. Lawxygen handles all aspects of preference share issuance and documentation.

Benefits - Benefits of Company Registration Online Using Lawxygen

Who Usually Requires This?

The Preference Shares Issuance solution matches perfectly with these profiles:

  • Startups and companies raising VC or PE funding through preferred equity
  • Founders who want to provide investor protections without giving up common equity rights
  • Companies structuring Series A or later rounds with investor-preferred share classes
  • Businesses using preference shares for ESOPs or employee equity programs
  • Any company structuring its capital to accommodate different classes of investors

How It Works

Execution is straightforward. Hand over the details and relax.

Consultation Request

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Data Preparation

Our agents format the forms via robust checks.

Execution

Final approvals fetched from the regulating authorities.

Expected Additional Levies

  • Filing Fees to Government
  • E-Stamp Duties according to state norms
  • Processing Levies based on capital limits

Core Advantages to Remember

Avoid Penalties

Better Market Position

Standardized Documentation

FAQ's