Dipti Mehta (NA) (46 Points)
02 November 2011A new private limited company was formed on 1/10/2011 in Gujarat. Stamp duties and every thing for AOA and MOA are also being paid.
There are two directors, capital is 100,000 divided into 10,000 share worth Rs 10 each.
Now how the share certificates should be issued to the directors?
Should the format of the certificate printed? or any other stamp duty is to be paid?
Vrinda Aghi
(Legal Associate)
(463 Points)
Replied 02 November 2011
Dear Dipti,
You may choose Demat format (go through NSDL website) or a physical copy format guided by Companies (Issue of Share Certificate) Rules, 1960 which prescribes the format.
Further, revenue stamp (1 Rupee) are to be affixed with the common seal of the company.
The format may be developed by each company the way it prefers, keeping in mind the Rules above mentioned.
yes the format has to be printed and handed over to the Share holders.
I hope the above clarifies the position.
Regards,
Vrinda
G.L.Subhramanian
(PCS)
(206 Points)
Replied 02 November 2011
Hi Dipti
Share certificates can be bought from outside and there is format for printing the details on the share certificate. It must be signed by two directors and an authorised signatory (Company Secretaty, if there is one). The seal of the company must be affixed at the bottom middle of the share certificate and a revenue stamp must be pasted on the middle of the seal.
There is no stamp duty for share certificates.
Regards,
Subbu
Shridhi Jain
(Company Secretary)
(1678 Points)
Replied 02 November 2011
Revenue stamp is to b pasted on Share Certificates.
Re.1 stamp for per Rs.1000 of value of shares.
Dipti Mehta
(NA)
(46 Points)
Replied 03 November 2011
Thank you Vrida Ji, Subbu Ji, and Shridhi Ji,
Bottom line -
(1) Need to print the share certificates with appropirate details.
(2) Need to past 10X 5 Revenue Stamps for 5000 shares worth50,000 at10 each.
(3) Need to apply company seal on the stamps.
(4) Make entry in the register.
Thanks for your support :)
G.L.Subhramanian
(PCS)
(206 Points)
Replied 03 November 2011
Hi Dipti
Last but not least, hold a board meeting to approve the issue of share certificates:):)
Regards,
Subbu
B R Ramesh
(Self Employed & (C S Student))
(1944 Points)
Replied 03 November 2011
Hi
In karnataka state the REVENUE STAMP Is banned on 2003,
in this case what we need to do ???
Megha Masta
(CS (final))
(53 Points)
Replied 03 November 2011
hi,
if revenue stamps are banned in karnatka state then the person needs to file application with SDM (state district magistrate) and they will do stamping on the certificates.
regards.
Dipti Mehta
(NA)
(46 Points)
Replied 03 November 2011
B R Ramesh Ji,
Its correct that Revenue Stamp is discontinued (not banned) in karnataka. It this case no revenue is to be paid for the documents at all. Simply the company seal will do.
Megha Masta Ji,
Are you sure that is the process? Because if no revenue is to be paid on the documents then there is no need to file application with DM.
Lets see what experts have to say about it.
CAclubindia
