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Bonus Issue of Shares

Reward your shareholders without any cash outflow — by capitalising reserves into free bonus shares. We handle the full bonus issue, compliantly.

Overview

A bonus issue gives existing shareholders additional shares free of cost, by capitalising the company’s accumulated free reserves or securities premium. It rewards shareholders and increases the share count without any cash outflow — often improving liquidity and signalling confidence.

GovYapar checks eligibility (sufficient reserves, authorised capital, AOA authority), manages the approvals, and files the allotment (PAS-3) so your bonus issue is done right.

What’s included

  • Eligibility & reserves check
  • Authorised-capital verification
  • Board & member resolution support
  • Bonus allotment processing
  • PAS-3 filing
  • Register & cap-table updates

Who needs this

  • Profitable companies with free reserves
  • Founders rewarding shareholders
  • Businesses adjusting their capital structure

Documents required

  • CIN & MOA/AOA
  • Reserves & financial statements
  • Cap table & shareholder details
  • Authorised-capital position
How it works

Simple, done-for-you process

A real Chartered Accountant handles the filing end-to-end.

1

Check

Reserves, AOA authority & capital verified.

2

Approve

Board & member resolutions passed.

3

Allot

Bonus shares allotted to shareholders.

4

File

PAS-3 filed; registers updated.

FAQs

Common questions

No — bonus shares are issued free, funded by capitalising the company’s free reserves or securities premium.

Sufficient free reserves, authority in the AOA, adequate authorised capital, and the required approvals. We verify and handle it.

If the bonus issue exceeds your current authorised capital, yes — we handle that increase as part of the process.

No — a bonus issue capitalises reserves into new shares; a stock split divides existing shares into smaller face values. We can advise on both.

Related

Related services

Issue bonus shares the right way.

Reward shareholders with no cash outflow — CA/CS-assisted.

Talk to a CA →