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ISSUE OF SHARE CERTIFICATE TO THE SUBSCRIBER OF MOA & AOA

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JYOTI

Business

41 Points Posted on 05 October 2021

Dear All,

My company was incorporated one month ago. As we know share certificates is to be issued within 60 days from the date of incorporation to the Equity shareholders or subscribers of MOA and AOA.

In my new company, Director1 and Director2 are the two equity shareholders 75000 and 25000 respectively total 1 lakh Share Capital of INR 1 each.

My question is

Q1) Is the STAMP DUTY of the Share Capital is paid during incorporation of the company. How can I examine that?

Q2) If not paid how to pay STAMP DUTY? Where should I visit? I am from BURDWAN, WEST BENGAL.

Q3) What will be STAMP DUTY for Share Capital (Paid-up and Equity) of INR 1,00,000 ?

Kindly help me.

Replies (1)

Rama chary Rachakonda

Master in Accounts & high court Advocate

7021 Points Posted on 05 October 2021

A share certificate is a certificate given to the shareholder of the company in the form SH-1. Firstly, Stamp duty on share certificate has to be paid at the time of incorporation, and afterward on every subsequent shares allotment

As per Section 3 of Indian Stamps Act 1899, Every Share Certificate must bear the necessary stamp duty as per the Stamp Act of the respective State/ Union Territory from which Certificate is issued. ... In such cases, putting adhesive stamp on each share certificate is not necessary.

Every company is obligated to pay stamp duty on the value of shares through online mode within 30 days from the date of issue of share certificates. Stamp duty needs to be paid where the registered office of the company is located. Stamp duty paid on the share certificates is Rs. 1/- for every Rs.