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?
1,000 on every Rs. 5 Lakhs of amount of increase in Authorised Share Capital or part thereof subject to a maximum of 50 Lakhs of Stamp Duty.
How is authorized share capital calculated?
Share Capital Formula
- Formula 1: Share capital equals the issue price per share times the number of outstanding shares.
- Formula 2: Share capital equals the number of shares times the par value of stock plus the paid in capital in excess of par value.
What is the procedure for increasing Authorised share capital?
The following attachments are to be provided:
- Notice of the EGM along with the Explanatory Statement as per Section 102.
- Certified copy of the resolution passed in the EGM.
- Copy of the new MOA (change made in the Capital Clause).
- Copy of the new AOA (provision for the increase in authorised share capital).
What is a stamp duty?
Stamp duty is the tax governments place on legal documents, usually in the transfer of assets or property. Governments impose stamp duties, also known as stamp taxes, on documents that are needed to legally record certain types of transactions.
What is the minimum paid-up capital for private limited company?
Rs.1 lakh
The Companies Act, 2013 earlier mandated that all Private Limited Companies have a minimum paid-up capital of Rs. 1 lakh. This meant that Rs. 1 lakh worth of money had to be invested in the company by purchase of the company shares by the shareholders to start the business.
How do you calculate the number of shares applied?
When the company decides to allot the shares at pro-rata basis, then it has to allot 10000 shares to the applicants of 20000 shares. Thus, the ratio will be 20000:10000 i.e. 2:1. Hence, an applicant for 2 shares will receive 1 share.
What is the difference between paid-up and authorized capital?
Authorized capital is the maximum value of the shares that a company is legally authorized to issue to the shareholders. Whereas, paid-up capital is the amount that is actually paid by the shareholders to the company. On the other hand, a company is not authorized to issue shares beyond the authorized share capital.
Can stamp duty be avoided?
Unless you’re a first-time buyer or your property’s value is below that threshold, you cannot avoid paying stamp duty.
Has stamp duty been extended?
The current Stamp Duty holiday will come to an end after June 2021, however in order to smooth the transition back to original rates, it will then be tapered until the end of September. Buyers will therefore need to move quickly if they are to take advantage of this valuable incentive.
When can Authorised share capital be increased?
Company can increase its authorized share capital, only if it is authorized by its Articles of Association and after obtaining approval of members by ordinary resolution.
How much paid up capital is required?
Paid-up Share Capital With the Companies Amendment Act 2015, there is no minimum requirement of paid-up capital of the Company. That means now Company can be formed with even Rs. 1,000 as paid-up capital.
Stamp duty shall be Rs. 1000 on every Rs. 5 Lakhs of amount of increase in authorised capital or part thereof subject to a maximum of 50 Lakhs of stamp duty.
How does MCA calculate stamp duty?
Where can I find the “Pay Stamp Duty Fees” facility? “Pay Stamp Duty Fees” facility has been provided under the tab “Services” available after login on MCA21 Portal.
Calculation of fees payable on increase in Authorised Share Capital
| Authorised Share Capital | Other than OPC and Small Companies | |
|---|---|---|
| Fixed | For every 10,000 or part thereof | |
| Upto 1,00,000 | 5,000 | N.A. |
| More than 1,00,000 upto 5,00,000 | 5,000 + | 400 |
| More than 5,00,000 upto 10,00,000 | 21,000 + | 300 |
What is the maximum Authorised share capital?
5 lakhs without raising the authorised share capital. However, if XYZ Pvt Ltd has issued shares of an amount of Rs. 25 Lakhs to shareholders with the same authorised capital of Rs. 20 Lakhs, it means Company has issued in excess of the maximum limit and hence it is not allowed under the law.
What is the calculation of authorized share capital?
Formula 1: Share capital equals the issue price per share times the number of outstanding shares. Formula 2: Share capital equals the number of shares times the par value of stock plus the paid in capital in excess of par value.
At the Board Meeting, pass a Board Resolution to call for an Extraordinary General Meeting and issue notice pursuant to the provision of Section 101 of the Act, where the altered clause on authorised capital in the Memorandum of Association can be presented for approval by passing an Ordinary Resolution.
How can I download MOA and AOA from MCA?
How can I get a copy of MOA and AOA of my company? You can get a copy of your companies MOA and AOA using Get Certified Copy service of MCA. Select Document Category as Incorporation Documents and select Year of Filing i.e, Incorporation Year. Make a payment of fees and create a request for its certified copies.
Can Authorised share capital be increased?
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.
Is there stamp duty on increase in authorised share capital?
For Companies other than Section 8 Companies, stamp duty shall be Rs. 1,000 on every Rs. 5 Lakhs of amount of increase in Authorised Share Capital or part thereof subject to a maximum of 50 Lakhs of Stamp Duty. In our case, increase is of Rs. 20,00,000.
Which is the maximum amount of stamp duty in India?
Stamp duty shall be: 0.15% of amount of increase in authorized capital subject to maximum of Rs. 25 Lakhs. 1000 on every Rs. 5 lakhs of authorised capital or part thereof subject to a maximum of 50 lakhs of stamp duty.
How does stamp duty work on a share?
The amount of Stamp Duty you pay is based on the ‘consideration’ you give for the stocks or shares. The consideration can be: cash; other stocks and shares; debt, which is usually related to the loan stock. You pay Stamp Duty at the rate of 0.5 per cent of the value of the consideration, rounded up to the nearest £5, on each document to be stamped.
How are fees calculated for increase in authorised share capital?
While calculating the fees for increase in Authorised Share Capital, one gets confused on how to calculate the Fees for MOA and Stamp Duty Amount.
