Authorised capital stamp duty

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ketan (Querist)

29 March 2014 As we know that more the authorised capital of a co. more the stamp duty to be paid while incorporation. So I was wondering if there was any way to invest say 60 lacs of money in a company with an authorised capital of say 2 lacs???

Nikhil Kaushik

Nikhil Kaushik (Expert)

29 March 2014 well most of the documents require stamp duty. even if you issue debentures, stamp duty would be required.

Plus, share application money is a not a very attractive avenue anymore given the stringent Form 5 INV requirements.

You may first check for valuation of the share of the company and consider issuing shares at premium to keep authorized capital at a lower level.

ketan

ketan (Querist)

29 March 2014 But wouldn't issuing shares at premium will entail that the co. couldn't use the amount equivalent to the premium for its normal day to day operation i.e buying or selling

Nikhil Kaushik

Nikhil Kaushik (Expert)

29 March 2014 where is that provided boss? you are confusing with the credit balance in securities premium account with the corresponding debit balance in bank balance.

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