Stamp duty for issue of share certificate

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Tirthankar Mukherjee (Querist)
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21 November 2015 Our company is incorporated on 20th August 2015, how can we issue share certificate to the subscribers to memorandum??

Tirthankar Mukherjee

Tirthankar Mukherjee (Querist)
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24 November 2015 Pls share..

Tirthankar Mukherjee

Tirthankar Mukherjee (Querist)
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26 November 2015 Stamp duty payment procedure for issue of share certificate..

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2025 Here’s a clear step-by-step on **stamp duty for issue of share certificates** and how to issue them to subscribers to the Memorandum:

### 1. **Issuing Share Certificates to Subscribers**

* After the company is incorporated, you need to issue share certificates to the subscribers who have agreed to take shares in the company.
* The share certificates must be signed by at least two directors or a director and the company secretary, and must mention the number of shares, distinctive numbers, and the shareholder’s details.
* The certificate must also be **serially numbered** and issued **within 2 months** from the date of incorporation or allotment.

### 2. **Stamp Duty on Share Certificates**

* Stamp duty is payable on the **value of shares issued**.
* The stamp duty rates vary by state, but generally, it is a **fixed amount or a small percentage of the share value**.

* For example, in many states, it is Rs. 1 for every Rs. 1000 (or part thereof) of the share value.
* So, if shares of Rs. 1,00,000 are issued, the stamp duty will be Rs. 100 (depending on state law).

### 3. **Procedure for Paying Stamp Duty**

* Affix the **revenue stamp(s)** on the **share certificate(s)** at the time of issue.
* The value of the stamp should correspond to the aggregate value of shares mentioned on the certificate.
* Alternatively, you can pay the stamp duty through a **challan** at the Stamp Office (depending on state law and rules).
* Keep the receipt or proof of payment for records and future reference.

### 4. **Key Points**

* Stamp duty must be paid **before the certificate is issued**.
* Stamp duty payment is mandatory to make the share certificate a valid legal document.
* Failure to pay stamp duty or improper stamping can lead to penalties and the share certificate may not be accepted as evidence in legal matters.

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If you want, I can also help you draft the **share certificate format** and the **board resolution** for issue of share certificates! Would you like that?

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