Issue of shares other than cash

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Nagendra Bhat (Querist)
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03 May 2017 Hello,

A company is being formed in India and one of the promoter is a foreign national. Can a company issue shares ( similar to sweat shares) for consideration other cash for the services rendered by a local person for the set-up and other related services? Please advice with the procedures to be carried out.

Thanks

krishna

krishna (Expert)
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05 May 2017 For issuing sweat equity shares there are certain conditions like one year should have been completed from the date of incorporation and sweat equity can be issued only to employees who are in employment for more than one year. So, I think you cannot issue share in the situation you mentioned