Buyback company shares: Board (up to 10%) or SR (up to 25%), escrow account, extinguish within 7 days
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.
Board approves buyback. Up to 10% of paid-up capital: no SR needed. Above 10%: SR required.
SR required if buyback exceeds 10% of total paid-up capital + free reserves.
Directors file declaration of solvency in Form SH-11.
Deposit 25% of buyback amount in escrow account.
Offer to buy back shares from shareholders as per terms.
Extinguish and destroy bought-back shares within 7 days.
File return of buyback with ROC.
Every guide runs like this in OnCompliance: steps in order, dates in view, paperwork made for you at each step.