What is the stamp duty for increase in Authorised share capital?

How is stamp duty calculated for increase in Authorised share capital?

5 Lakhs shall be calculated every time there is any increase in share capital, even if the company has already paid Rs. 5 Lakhs of stamp duty. (iii) However, If 0.15% of amount of existing authorised capital is Rs. 5 lakhs or more then no stamp duty shall be payable.

What is the fee for increase in Authorised share capital?

Charges for Additional Authorized Capital

For each lakh of additional share capital from Rs. 1 lakh to Rs. 5 lakh, Rs. 4,000 per lakh of Authorised capital.

What happens when authorised capital is increased?

Company authorised capital is Rs. 6,00,000 and paid up capital is Rs. 1,00,000 therefore company can easy expand its business via raising fund of Rs. 5,00,000 by further issue of 50,000 equity shares of Rs.

Increase in Authorised Share capital of Company.

Existing paid up capital 1,00,000
Revised paid up capital 6,00,000 equal to the authorised capital

Can you increase Authorised share capital?

The authorised capital is the maximum amount of capital for which the Company can issue shares to the shareholders. … A company may take the necessary steps required to increase the authorised capital limit in order to issue more shares, but it cannot issue shares exceeding the authorised capital limit in any case.

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Which state has highest stamp duty?

Stamp Duty Rates in Indian states

State Stamp Duty Rate
Punjab 6% of consideration
Tamil Nadu 8% of market value
Rajasthan 11% of market value of property
Uttar Pradesh 8% of market value or consideration, (whichever is greater)

What is the stamp duty for transfer of shares?

The present stamp duty rate for transfer of share is 25 paise for every one hundred rupees of the value of the share or part thereof. That means for shares valued Rs. 1,050, the stamp duty will be Rs. 2.75.

What is the minimum Authorised share capital?

Authorised Capital of a Company

The initial authorised capital of the Company is mentioned in the Memorandum of Association of the Company and is usually Rs. 1 lakh. The company can increase the capital at any time with shareholders approval and by paying an additional fee to the Registrar of Companies.

How is authorised capital decided?

Authorised Share Capital

It is the maximum amount of the capital for which shares can be issued by the Company to shareholders. The Authorised capital is mentioned in the Memorandum of Association of the Company under the heading of “Capital Clause”. It is even decided prior to incorporation of the Company.

What is the fees for company registration?

Fee for One Person and Small Companies

The registration fee for organization’s whose nominal share capital is limited to Rs. 10,00,000 – Rs 2,000. The registration fee for organization’s whose nominal share capital ranges between Rs 10,00,000 to Rs 50,00,000 – Rs 2000.

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What are the benefits of increasing Authorised share capital?

With the increase in share capital, the company’s overall net worth also increases. This further enhances the borrowing capacity of the company. It could invite investments as the same can be easily accommodated if there is enough authorised capital.

Can Authorised capital be reduced?

Extract of Section 61 of the Companies Act, 2013- Power of Limited Company to Alter its Share Capital. (a) increase its authorised share capital by such amount as it thinks expedient; … (2) The cancellation of shares under sub-section (1) shall not be deemed to be a reduction of share capital.”

Can paid up capital be increased?

Paid-up capital is the amount of money a company has been paid from shareholders in exchange for shares of its stock. … A company that is fully paid-up has sold all available shares and thus cannot increase its capital unless it borrows money by taking on debt. Paid-up capital can never exceed authorized share capital.