Share Certificates are issued to the shareholders by the company after paying the requisite stamp duty. In case the paid-up capital of the company is less than Rs 50 lakhs, it is signed by the Directors of the company and for the cases where the paid-up capital is more than Rs 50 lakhs, a Company Secretary (on the payroll of the company) needs to sign it
In case the company is using the private placement of shares method to raise capital, a separate bank account should be used to receive the investment. In case the company issues shares via Rights issue, the investment can come to the company’s primary bank account.
Share transfer is the transfer of share from an existing shareholder to the investor. The money, in this case, goes to the shareholders selling their shares. They will need to pay the applicable income tax. In the case of Rights issue or Private placement of shares, fresh shares are issued by the company in lieu of the investment amount.
Stamp duty for Share Certificates varies from state to state. However in majority of the states, the stamp duty is 1% of the investment amount.
Share Certificates are issued to the shareholders by the company after paying the requisite stamp duty. In case the paid-up capital of the company is less than Rs 50 lakhs, it is signed by the Directors of the company and for the cases where the paid-up capital is more than Rs 50 lakhs, a Company Secretary (on the payroll of the company) needs to sign it.
In case the company is using the private placement of shares method to raise capital, a separate bank account should be used to receive the investment. In case the company issues shares via Rights issue, the investment can come to the company’s primary bank account.
Share transfer is the transfer of share from an existing shareholder to the investor. The money, in this case, goes to the shareholders selling their shares. They will need to pay the applicable income tax. In the case of Rights issue or Private placement of shares, fresh shares are issued by the company in lieu of the investment amount.
Increasing the authorized share capital Transfer of funds from the investor to the company Issue of sharesThis can be done by either Private placement of shares or Rights issue. The choice of method depends on the increase in paid-up capital due to issue of shares to a single investor, as prescribed by the Company law. Board resolutions and documents preparation Valuation certificate Singing of SHA and SSA Issue of share certificates Filing for FC-GPR, in case of investment from outside India
No, the process remains the same. However, for body corporate additional documents like the Charter documents of the Investing company, resolutions relating to investment intent and appointment of authorized person representing the body corporate will be needed. In the case of the investor being a foreigner (non-Indian passport holder), the process remains the same. However, the KYC documents of the foreign investor should be notarized and apostilled. Additionally, if foreign funds are being transferred then it is the responsibility of the investee company to report it to RBI by filing FC-GPR.
The authorized capital of a company is the maximum amount of share capital that the company is authorized by its constitutional documents to issue to shareholders (at book value). A company can decide its authorized capital and can increase it as an when needed.