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Stamp duty payment to be made online

Posted on 29 April 2008,    
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Stamp duty payment to be made online

The government is all set to instigate a centralized electronic stamp duty payment and online vetting of charter of new companies, irrespective of the states where they are set up. Entrepreneurs will soon be able to incorporate a company in India sitting anywhere in the world without having to face red tape.

Physical presence at the registrar of companies is essential for stamp duty payment in the state of incorporation and vetting of the company’s charter. The Centre has already started talking to state governments to tackle legal issues related to amending the Stamp Act of states and administrative issues related to duty payment.

The move will not, however, lead to uniform stamp duty and the proposed online payment system will manage accounting for varying duty in different states.

The system would generate electronic stamp papers, on which the entrepreneur has to file affidavits using digital signature. The existing online filing system only provides for filing statutory documents like annual reports but not for starting a new company.

The memorandum of association and articles of association of new companies too have to be vetted physically by the RoC now. The ministry of corporate affairs will introduce a standard template for the charter of new companies.

Only those entrepreneurs who want to deviate from the standard template, will need to physically go to the RoC. New Delhi and Maharashtra account for most of the newly registered companies every year, with the services sector accounting for a large number of them. About 300 foreign companies are registered in India every year.



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