← All guidesEvent based

Sweat Equity (S.54)

Issue sweat equity shares for IP/know-how/value addition: Board + SR, valuation by registered valuer

6 steps~103 days start to finishfiles PAS-3files MGT-14
If it’s filed late

MCA charges additional fees that rise with the delay, up to 12 times the normal filing fee. OnCompliance tracks the date and warns you before it costs anything.

See this deadline for your clients →

The steps, in order

1

Obtain Valuation Report

Get valuation of IP/know-how by a registered valuer. Max 25% of paid-up (15% for listed).

within 14 days
2

Board Approval

Board approves sweat equity issue.

within 7 days
3

Pass Special Resolution

Members pass SR at GM. Min 1-year employment required.

within 30 days
4

Allot Sweat Equity Shares

Allot shares as per SR terms.

within 7 days · document made for you
5

File PAS-3

File return of allotment within 15 days.

within 15 days · files PAS-3 · document made for you
6

File MGT-14

File SR with ROC.

within 30 days · files MGT-14

Every guide runs like this in OnCompliance: steps in order, dates in view, paperwork made for you at each step.

Run these steps in OnCompliance →
Related guides
Share AllotmentShare TransferRegistered Office ChangeRights Issue (S.62(1)(a))Bonus Issue (S.63)