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Issue Share Certificate

Issuing share certificates is a crucial compliance requirement for companies after allotting shares. As per the Companies Act, 2013, companies must issue share certificates within 60 days of incorporation or allotment. Company Mitra ensures a smooth and legally compliant share certificate issuance process, eliminating the risk of penalties.

Requirement

A share certificate is a legal document that serves as proof of ownership in a company. Every company issuing shares must provide certificates to shareholders within the prescribed timeframe to ensure compliance with regulatory laws.

Benefits

Legal Ownership – Confirms shareholders' rights over shares.
Statutory Compliance – Avoids penalties and legal issues.
Enhances Credibility – Strengthens investor confidence.
Record Maintenance – Helps in tracking shareholding patterns.

Document Required

Certificate of Incorporation
Memorandum & Articles of Association (MoA & AoA)
Board Resolution for share certificate issuance
Share allotment details
PAN card & identity proof of shareholders
Stamp duty payment proof (if applicable)

Professional Fees

~~₹3,000.00~~ ₹1,500.00

Additional Cost

Process time

⏳The share certificate issuance process typically takes 7-10 working days after submission of required documents.

Steps

⏬ Contact Company Mitra and share company & shareholder details.
⏬ Submit required documents for verification.
⏬ Drafting of Board Resolution for share certificate issuance.
⏬ Preparation of share certificates with necessary details.
⏬ Payment of stamp duty (if applicable).
⏬ Issuance and dispatch of share certificates to shareholders.

FAQ

👉 What is the time limit for issuing a share certificate?
It must be issued within 60 days of incorporation or share allotment.

👉 Who is responsible for issuing the share certificate?
The Board of Directors is responsible for issuing share certificates.

👉 Is stamp duty applicable on share certificates?
Yes, stamp duty is applicable as per state laws.

👉 What details should a share certificate contain?
It must include the shareholder’s name, number of shares, issue date, company seal, and authorized signatures.

👉 Can a company issue digital share certificates?
Yes, dematerialized (electronic) share certificates are allowed.

👉 What happens if a share certificate is lost?
A duplicate certificate can be issued after proper verification.

👉 Can a private company issue share certificates?
Yes, all companies issuing shares must provide share certificates.

👉 Is share certificate issuance mandatory for unlisted companies?
Yes, even unlisted companies must issue share certificates.

👉 How is stamp duty paid for share certificates?
It is paid via e-stamping or physical stamping as per state regulations.

👉 What if a company fails to issue share certificates on time?
The company and officers are liable for penalties.

👉 Can share certificates be transferred to another person?
Yes, shares can be transferred, and a new certificate will be issued.

Compliances

📌 Compliance Requirement	📅 Due Date	📖 Remarks

Issuance of Share Certificates

Within 60 days of incorporation/share allotment 📆

Mandatory for all companies

Stamp Duty Payment (if applicable)

Within 30 days of share issuance 💰

As per state government rules

Filing of PAS-3 (Return of Allotment)

Within 30 days of allotment 📤

To be filed with MCA

Maintenance of Share Register (Form SH-1)

Ongoing 📑

Required for record-keeping

Penalties

⚠️ Penalty & Interest

🚨 Non-Compliance Issue	❌ Penalty & Interest	⚖️ Consequences
Failure to Issue Share Certificates	₹25,000 – ₹5,00,000 💸	Penalty on company & officers
Late Payment of Stamp Duty	Interest @ 1.5% per month 📈	As per state rules
Non-Filing of PAS-3	₹500 per day 🕒	Continues until compliance is met
Failure to Maintain Share Register	₹50,000 – ₹3,00,000 🏦	Imposed on the company