If you are a director or KMP or a consultant of a company having registered office in Gurugram, there are a lot of compliances and regulatory requirements that you should be aware of. One such complex compliance is Stamping of Share Certificates. In today’s time Stamping of Share Certificates in Gurugram seems to be a complex and time taking procedure as it is still done in a completely physical mode and not via any online portal.
The stamping of Share Certificate is completed after the payment of stamp duty applicable on issue of share certificates. And finally, a Share Allotment Stamp Duty Certificate is issued by the authority.
Share Certificate Stamping Requirement
Every Company issuing shares to its investors, shareholders, employees or any other person, is required to issue the respective share certificates within two months of allotment of such shares or in case of a newly incorporated company, within two months from the date of incorporation.
Further, the share certificate shall be accordingly stamped within 30 days of issue of such share certificates.
Rate of Stamp Duty
The rate of stamp duty varies from state to state. In Haryana, the rate of stamp duty on issue of share certificate is Rs. 1/- (Rupees One Only) per Rs. 1,000/- (Rupees One Thousand only) of the value of shares (0.1% of the total amount of shares issued).
Relevant Authority for Stamping of Share Certificates: In Gurugram, the relevant authority for stamping of share certificates is the Collector of Stamps, Revenue Department, Gurgaon, Haryana.
Please note that only a Company Secretary or Chartered Accountant (whether in employment or in practice) are authorized to undertake the stamping process in Gurugram, Haryana.
Non-Compliance
In case if the company fails to apply for the stamping of share certificates within the stipulated time period, the Authority shall levy a penalty up to 10 times of the stamp duty amount.
For example, ABC Ltd. issues share worth Rs. 10 Lakhs. Now as per the prescribed rate the stamp duty payable shall be Rs. 1,000.
In case if ABC Ltd. delays in submitting the stamping documents with the relevant authority, the total amount payable can go up to Rs. 10,000.
Documents required
Application form duly affixed with Rs. 10/- court fee stamp.
Certified copy of Share Certificates
Copy of Form PAS-3/ Copy of Spice Form Part B
Certified copy of board resolution
Certified copy of PAN of company
Certified copy of Memorandum and Articles of Association
Certified copy of list of existing directors
Certified copy of list of Allottees/Share Certificate Holders
Certified Authority letter of Company Secretary/Chartered Accountant (having a valid ICSI/ICAI membership).
(These documents shall be submitted together in the sequence as provided above)
In this article, we have explained what stamping is and how it works in Gurugram, Haryana. We will be posting Part-2 of this article very soon where we will explain the process after the submission of these documents and the formats of the relevant documents will be provided as well.
Till then stay tuned with JJ Tax.
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