Stamp duty rules for form 1, moa, aoa, and form 5

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Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2013
Dear Sir

I want to know why Stamp Duty is much more high in Punjab as compared to the other states, is there any reason behind the same ?

State wise stamp duty rules for eForm 1, Memorandum of Association (MoA), Articles of Associations (AoA) )

Punjab (companies having share capital other than section 25)

Form1 : Rs. 25
MOA: Rs. 5000
AOA : Rs. 5000 if authorised capital is less than equal to Rs. 1 lakh and 10,000 if authorised capital is greater than Rs. 1 lakh

please answer asap

thanks

Ajay Mishra

Ajay Mishra (Expert)
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23 September 2013 Hi

It will be explained by The Punjab State.

I will support the stamp duty levied by Punjab State, because when you will increase your authorised share capital, you will not paid any stamp duty on such increase.

Most of the other state levied .15% stamp duty on increased capital.

So you are lucky in this sense that your company will not paid any further stamp duty on share capital.

Querist : Anonymous

Querist : Anonymous (Querist)

23 September 2013 So sir

do you want to say
if we increase our paid up capital in future then we'll not require to pay any stamp duty

is it ?

Kindly clarify

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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25 July 2025 Hey! Here's a breakdown and clarification on your queries regarding **stamp duty on Form 1, MOA, AOA, and related rules in Punjab** and other states:

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### 1. **Why is Stamp Duty higher in Punjab?**

* Stamp duty rates vary from state to state because **stamp duty is a state subject under the Constitution of India**.
* Punjab’s rates are relatively higher due to its own Stamp Act provisions and policies decided by the state government.
* Each state has its own **stamp act and schedules** fixing different rates for instruments like MOA, AOA, and company forms.
* This leads to variations and sometimes significant differences.

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### 2. **Punjab Stamp Duty rates (as you mentioned):**

* **Form 1 (Declaration of compliance)**: Rs. 25
* **MOA (Memorandum of Association)**: Rs. 5,000
* **AOA (Articles of Association)**:

* Rs. 5,000 if authorized capital ≤ Rs. 1 lakh
* Rs. 10,000 if authorized capital > Rs. 1 lakh

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### 3. **If authorized or paid-up capital is increased later, do we need to pay stamp duty again?**

* **Yes, you generally need to pay stamp duty on increase of authorized share capital.**
* It is not a one-time payment at incorporation only.
* When a company increases its authorized capital (through filing eForm SH-7), **stamp duty is payable on the increased amount.**
* Similarly, any alteration in MOA/AOA that reflects capital change would attract stamp duty.
* Some states allow a **fixed or capped stamp duty**; others levy proportional or slab-based duties.

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### 4. **Is stamp duty payable on Form 5?**

* Form 5 (Return of Allotment of Shares) itself may not require stamp duty, but **share certificates issued on allotment require stamp duty**.
* Stamp duty on share certificates is generally based on the value of shares allotted.
* This stamp duty also varies state-wise.

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### Summary for your question:

* You **cannot avoid stamp duty on increase of capital** by paying once at incorporation.
* You have to **pay stamp duty every time authorized capital is increased**, per state law.
* Punjab has relatively higher rates compared to some other states.
* For exact rates and rules for each form and event, always check the **state’s Stamp Act** or consult the jurisdictional stamp office.

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If you want, I can help you find exact rules for any particular state or guide on how to calculate stamp duty on capital increase.

Does that clear your doubts?

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