What is a Share Certificate?
What is Share Franking and When Is It Required?
What is the Procedure of Franking and Stamping a Share Certificate?
- Determine Applicable Stamp Duty Rates: Understand the prevailing stamp duty rates applicable to share certificates in your state. These rates can vary based on factors such as the value of shares issued and local regulations.
- Prepare Necessary Documentation: Gather all required documentation, including the share certificate itself and any supporting paperwork, such as shareholder details and transaction records.
- Visit the Local Stamps Office: Identify the designated authority responsible for stamping and franking share certificates in your jurisdiction. This could be the office of the Sub Registrar or Collector of Stamp Duty.
- Submit Application: Apply for stamping and franking of the share certificate to the designated authority in the local Stamps Office. This may involve filling out specific forms or providing relevant information as per local requirements.
- Pay Stamp Duty: Pay the applicable stamp duty fees as per the prescribed rates. This could involve affixing physical stamps or using electronic means, depending on the process followed in your state.
- Receive Stamped Certificate: Once the stamp duty is paid and the share certificate is duly stamped and franked, it will be returned to you by the designated authority. Ensure that the certificate bears the necessary stamps and endorsements to validate its legality.