Stamp Duty Payment for Delhi Companies on Issuance of Share Certificates

Stamp Duty Payment for Delhi Companies on Issuance of Share Certificates . When a company registered in Delhi issues share certificates to its shareholders, compliance with stamp duty payment is mandatory. Stamp duty acts as evidence of legal recognition of the share certificates issued by a company, thus safeguarding the rights and interests of shareholders. In Delhi, the stamp duty payment process is governed by the Indian Stamp Act, 1899, and the Delhi Stamp Rules, which specify the applicable rates, timelines, and procedural requirements. Understanding these requirements is crucial for companies to avoid legal complications, penalties, or delays in corporate transactions. Through this article we will outline the mandatory details, procedures, and considerations, stamp duty for Delhi-based companies to easily comply with stamp duty obligations when issuing share certificates.
What is E-Stamping?
E-stamping or payment of stamp duty is the digital version of buying a stamp paper as per the state stamp act. In the past, when someone needed to pay stamp duty for legal documents (like property agreements or share certificates), they had to visit a stamp vendor and buy a physical stamp paper. That old-school method had problems—it could be slow, unorganized, and even fake stamp papers.
To fix all that, the Government of India introduced e-stamping, a safer and faster way to pay stamp duty online. Instead of physical stamp papers, now you get a digitally generated e-stamp certificate, which can be printed and attached to your document. In Delhi, the Stock Holding Corporation of India Limited (SHCIL) is the official agency authorized to manage e-stamping including payment of stamp duty on share certificates.
Why Is E-Stamping Required for Share Certificates?
Whenever a company issues “share certificates” under the Companies Act 2013 to its shareholders be it after Incorporation of the company or after funding or issue of further share capital, it must pay a stamp duty to the government which is a legal requirement under the “Indian Stamp Act, 1899” and applies to both new shares (issued when a company is formed or increases paid up capital) and transferred shares (when an existing shareholder sells shares to someone else). The duty must be paid before signing or issuing the share certificate, and e-stamping is now the most common method for doing that in Delhi.
What are the E-Stamping Charges in Delhi?
Stamp duty charges differ from state to state, and even from document to document:-
For Fresh Share Issuance (Allotment of Shares):

Rate: Rs.1 for every Rs.1,000 or part thereof of the face value of shares and including premium amount (if any).

Example: If a company issues 10,000 shares with a face value of Rs.10 each (total Rs.1,00,000), the stamp duty would be Rs.100.

For Transfer of Shares:

Rate: 0.015 of the value of the consideration (i.e., the amount paid for shares).

Example: If someone buys shares worth Rs.1,00,000, the stamp duty would be Rs.150.

These rates are as per the Delhi Stamp Act, and are payable via e-stamping in Delhi.
How to Pay Stamp Duty Online in Delhi?
Paying stamp duty online in Delhi is a straightforward process, through the SHCIL portal. You don’t need to stand in queues or visit government offices, a step-by-step guide on how to pay stamp duty for share certificates via e-stamping:
Step 1: Visit the SHCIL Website
Go to the official Stock Holding Corporation of India Limited (SHCIL) e-stamping portal:  https://www.shcilestamp.com/
Step 2: Select the State
Choose “Delhi” as the state from the dropdown menu.
Step 3: Choose the Type of Document
Select the document type—either:

“Allotment of Shares” for new shares issued by the company

“Transfer of Shares” for buying/selling of existing shares

Step 4: Fill in the Details
You’ll need to enter:

Name of buyer (for transfer) or allottee (for issuance)

PAN number (if available)

Consideration value or face value

Stamp duty amount (system may auto-calculate)

Step 5: Make Payment
You can pay using:

Internet Banking

Debit Card

NEFT / RTGS

Once payment is done, an e-Stamp Certificate is generated instantly.
Step 6: Download and Print
Download the e-stamp certificate and take a print. 
Step 7: Final order
The downloaded Stamp Paper needs to be deposited into the concerned Revenue Department and the department will issue the final order of E Stamping of Share Certificate.
This final order required to attach it with the relevant share certificate or maintain it in your company’s compliance records.
What is the Validity of E-Stamp in Delhi?
"Does the e-stamp certificate expire?"
An e-stamp certificate does not expire as long as it is used for the purpose for which it was generated. That means if you took an e-stamp certificate for allotment of shares and used it for the same, there is no time limit. However, unused e-stamp certificates can be refunded within 6 months from the date of issue (subject to approval by the concerned authority).
So always make sure:

You’re entering the correct document type while generating the certificate

You’re using it for the intended purpose

Can We Take an E-Stamp Online?
Yes absolutely, In Delhi, individuals and companies can directly generate an e-stamp certificate online without visiting any government office or vendor. You just need:

A working internet connection

Your basic document details (like type, parties, and value)

Access to online payment

You can also approach Authorized Collection Centers (ACCs), which are SHCIL-approved agents who can help you generate e-stamp certificates. But in most cases, especially for corporate professionals, doing it online is the fastest and safest method.
Benefits of E-Stamping for Share Certificates
E-stamping makes the process of share certificate compliance in Delhi much easier. Here are some of the key benefits:

Time-Saving: No more running around for physical stamp papers. You can get your e-stamp in minutes.

Secure and Tamper-Proof: Each e-stamp certificate has a unique identification number (UIN), which helps in verification and avoids forgery.

Legally Valid: E-stamp certificates are fully recognized by courts, ROC (Registrar of Companies), and other authorities.

Easy Verification: You can verify any e-stamp certificate online on the SHCIL website by using the UIN.

Frequently Asked Questions (FAQs)
Q1. What is e-stamping for share certificates in Delhi? 
Ans. E-stamping for Delhi companies is the digital method of paying stamp duty on share certificate issuance in Delhi, replacing traditional stamp paper and ensures secure, tamper-proof payment for share allotments or transfers.
Q2. Who manages e-stamping in Delhi? 
Ans. The Stock Holding Corporation of India Limited (SHCIL) is the official agency authorized by the Delhi government to manage and issue e-stamp certificates.
Q3. Is it mandatory to pay stamp duty on share certificates? 
Ans. Yes, stamp duty is legally required when issuing shares after increase of paid up share capital through Right issue or Private Placement or transferring share certificates. It must be paid before or at the time of issuing the certificates.
Q4. How can I pay stamp duty for share certificates online in Delhi? 
Ans. Visit www.shcilestamp.com, select Delhi as your state, choose the document type (e.g., "Allotment of Shares"), fill in the details, pay online, and download the e-stamp certificate.
Q5. Can I pay stamp duty for share certificates from outside Delhi? 
Ans. If the company is registered in Delhi and the share certificate execution takes place in Delhi, then the stamp duty must be paid in Delhi—even if the shareholder is from another state.
Q6. Is stamp duty paid once or multiple times? 
Ans. Stamp duty is paid once per transaction:

For new allotments, duty is paid at the time of issuing share certificates.

For transfers, duty is paid each time shares change hands.

Q7. Do I need to submit an e-stamp certificate to MCA? 
Ans. You are not required to submit this document immediately when filing Form PAS-3 (Return of Allotment) with the MCA. However, it must be maintained in the company's records, as it may be requested during an inspection by the Income Tax authorities or if the MCA raises any queries.
Q8. Is payment of stamp duty mandatory before the dematerialization (demat) of shares? 
Ans. Yes, its recommendation for payment of stamp duty before the dematerialization (demat) of shares. According to applicable regulations under the Indian Stamp Act, 1899, shares must be duly stamped at the prescribed rate before they can be dematerialized. Depositories like NSDL or CDSL explicitly require that share certificates be properly stamped as proof of compliance with stamp duty obligations before initiating the dematerialization process (surrender of physical copy of share certificates)
If shares have not been adequately stamped before dematerialization, the Registrar and Transfer Agent (RTA) or depository participant may reject the demat request. Therefore, it is crucial for companies and shareholders to ensure that share certificates are properly stamped in line with the relevant state's stamp duty provisions prior to submitting them for dematerialization.
Q9. What is the time limit for stamp duty on the issue or transfer of share certificates? 
Ans. The Indian Stamp Act, 1899, as amended in 2024 (effective from July 1, 2024), mandates the payment of stamp duty on share certificates within 30 days from the date of issuance or transfer of shares. While this requirement is uniformly applicable across all states and union territories in India, in practice, state authorities continue to collect stamp duty according to their respective state stamp laws and prescribed norms.
Q10. What is the penalty for delay in payment of stamp duty on share Certificates ? 
Ans. In Delhi, if a company fails to pay stamp duty on share certificates within the prescribed period of 30 days from the date of issuance, it is liable to face penalties under the Indian Stamp Act, 1899. ?Non-payment of stamp duty can result in penalties of up to ten times the amount of the unpaid or deficient stamp duty. Additionally, the Collector of Stamps or any authorized official has the authority to impound the relevant document if it appears that the instrument is not adequately stamped.
Penalty:
In case of Hearing Requirement: The company's authorised representative including professional must attend a hearing scheduled by the concerned authority to explain the reason for the delay and subject to power of the officer may waive off if any genuine grounds for the delay.
In case of Penalty Imposition: The authority “SDM” has the discretion to impose a penalty, which can be up to 10 times the amount of the unpaid stamp duty. The exact penalty depends on the duration of the delay and the justification provided by the company.

When a company registered in Delhi issues share certificates to its shareholders, compliance with stamp duty payment is mandatory. Stamp duty acts as evidence of legal recognition of the share certificates issued by a company, thus safeguarding the rights and interests of shareholders. In Delhi, the stamp duty payment process is governed by the Indian Stamp Act, 1899, and the Delhi Stamp Rules, which specify the applicable rates, timelines, and procedural requirements. Understanding these requirements is crucial for companies to avoid legal complications, penalties, or delays in corporate transactions. Through this article we will outline the mandatory details, procedures, and considerations, stamp duty for Delhi-based companies to easily comply with stamp duty obligations when issuing share certificates.

What is E-Stamping?

E-stamping or payment of stamp duty is the digital version of buying a stamp paper as per the state stamp act. In the past, when someone needed to pay stamp duty for legal documents (like property agreements or share certificates), they had to visit a stamp vendor and buy a physical stamp paper. That old-school method had problems—it could be slow, unorganized, and even fake stamp papers.

To fix all that, the Government of India introduced e-stamping, a safer and faster way to pay stamp duty online. Instead of physical stamp papers, now you get a digitally generated e-stamp certificate, which can be printed and attached to your document. In Delhi, the Stock Holding Corporation of India Limited (SHCIL) is the official agency authorized to manage e-stamping including payment of stamp duty on share certificates.

Why Is E-Stamping Required for Share Certificates?

Whenever a company issues “share certificates” under the Companies Act 2013 to its shareholders be it after Incorporation of the company or after funding or issue of further share capital, it must pay a stamp duty to the government which is a legal requirement under the “Indian Stamp Act, 1899” and applies to both new shares (issued when a company is formed or increases paid up capital) and transferred shares (when an existing shareholder sells shares to someone else). The duty must be paid before signing or issuing the share certificate, and e-stamping is now the most common method for doing that in Delhi.

What are the E-Stamping Charges in Delhi?

Stamp duty charges differ from state to state, and even from document to document:-

For Fresh Share Issuance (Allotment of Shares):

Rate: Rs.1 for every Rs.1,000 or part thereof of the face value of shares and including premium amount (if any).
Example: If a company issues 10,000 shares with a face value of Rs.10 each (total Rs.1,00,000), the stamp duty would be Rs.100.

For Transfer of Shares:

Rate: 0.015 of the value of the consideration (i.e., the amount paid for shares).
Example: If someone buys shares worth Rs.1,00,000, the stamp duty would be Rs.150.

These rates are as per the Delhi Stamp Act, and are payable via e-stamping in Delhi.

How to Pay Stamp Duty Online in Delhi?

Paying stamp duty online in Delhi is a straightforward process, through the SHCIL portal. You don’t need to stand in queues or visit government offices, a step-by-step guide on how to pay stamp duty for share certificates via e-stamping:

Step 1: Visit the SHCIL Website

Go to the official Stock Holding Corporation of India Limited (SHCIL) e-stamping portal:
https://www.shcilestamp.com/

Step 2: Select the State

Choose “Delhi” as the state from the dropdown menu.

Step 3: Choose the Type of Document

Select the document type—either:

“Allotment of Shares” for new shares issued by the company
“Transfer of Shares” for buying/selling of existing shares

Step 4: Fill in the Details

You’ll need to enter:

Name of buyer (for transfer) or allottee (for issuance)
PAN number (if available)
Consideration value or face value
Stamp duty amount (system may auto-calculate)

Step 5: Make Payment

You can pay using:

Internet Banking
Debit Card
NEFT / RTGS

Once payment is done, an e-Stamp Certificate is generated instantly.

Step 6: Download and Print

Download the e-stamp certificate and take a print.

Step 7: Final order

The downloaded Stamp Paper needs to be deposited into the concerned Revenue Department and the department will issue the final order of E Stamping of Share Certificate.

This final order required to attach it with the relevant share certificate or maintain it in your company’s compliance records.

What is the Validity of E-Stamp in Delhi?

"Does the e-stamp certificate expire?"

An e-stamp certificate does not expire as long as it is used for the purpose for which it was generated. That means if you took an e-stamp certificate for allotment of shares and used it for the same, there is no time limit. However, unused e-stamp certificates can be refunded within 6 months from the date of issue (subject to approval by the concerned authority).

So always make sure:

You’re entering the correct document type while generating the certificate
You’re using it for the intended purpose

Can We Take an E-Stamp Online?

Yes absolutely, In Delhi, individuals and companies can directly generate an e-stamp certificate online without visiting any government office or vendor. You just need:

A working internet connection
Your basic document details (like type, parties, and value)
Access to online payment

Benefits of E-Stamping for Share Certificates

E-stamping makes the process of share certificate compliance in Delhi much easier. Here are some of the key benefits:

Time-Saving: No more running around for physical stamp papers. You can get your e-stamp in minutes.
Secure and Tamper-Proof: Each e-stamp certificate has a unique identification number (UIN), which helps in verification and avoids forgery.
Legally Valid: E-stamp certificates are fully recognized by courts, ROC (Registrar of Companies), and other authorities.
Easy Verification: You can verify any e-stamp certificate online on the SHCIL website by using the UIN.

Frequently Asked Questions (FAQs)

Q1. What is e-stamping for share certificates in Delhi?

Ans. E-stamping for Delhi companies is the digital method of paying stamp duty on share certificate issuance in Delhi, replacing traditional stamp paper and ensures secure, tamper-proof payment for share allotments or transfers.

Q2. Who manages e-stamping in Delhi?

Ans. The Stock Holding Corporation of India Limited (SHCIL) is the official agency authorized by the Delhi government to manage and issue e-stamp certificates.

Q3. Is it mandatory to pay stamp duty on share certificates?

Ans. Yes, stamp duty is legally required when issuing shares after increase of paid up share capital through Right issue or Private Placement or transferring share certificates. It must be paid before or at the time of issuing the certificates.

Q4. How can I pay stamp duty for share certificates online in Delhi?

Ans. Visit www.shcilestamp.com, select Delhi as your state, choose the document type (e.g., "Allotment of Shares"), fill in the details, pay online, and download the e-stamp certificate.

Q5. Can I pay stamp duty for share certificates from outside Delhi?

Ans. If the company is registered in Delhi and the share certificate execution takes place in Delhi, then the stamp duty must be paid in Delhi—even if the shareholder is from another state.

Q6. Is stamp duty paid once or multiple times?

Ans. Stamp duty is paid once per transaction:

For new allotments, duty is paid at the time of issuing share certificates.
For transfers, duty is paid each time shares change hands.

Q7. Do I need to submit an e-stamp certificate to MCA?

Ans. You are not required to submit this document immediately when filing Form PAS-3 (Return of Allotment) with the MCA. However, it must be maintained in the company's records, as it may be requested during an inspection by the Income Tax authorities or if the MCA raises any queries.

Q8. Is payment of stamp duty mandatory before the dematerialization (demat) of shares?

Ans. Yes, its recommendation for payment of stamp duty before the dematerialization (demat) of shares. According to applicable regulations under the Indian Stamp Act, 1899, shares must be duly stamped at the prescribed rate before they can be dematerialized. Depositories like NSDL or CDSL explicitly require that share certificates be properly stamped as proof of compliance with stamp duty obligations before initiating the dematerialization process (surrender of physical copy of share certificates)

If shares have not been adequately stamped before dematerialization, the Registrar and Transfer Agent (RTA) or depository participant may reject the demat request. Therefore, it is crucial for companies and shareholders to ensure that share certificates are properly stamped in line with the relevant state's stamp duty provisions prior to submitting them for dematerialization.

Q9. What is the time limit for stamp duty on the issue or transfer of share certificates?

Ans. The Indian Stamp Act, 1899, as amended in 2024 (effective from July 1, 2024), mandates the payment of stamp duty on share certificates within 30 days from the date of issuance or transfer of shares. While this requirement is uniformly applicable across all states and union territories in India, in practice, state authorities continue to collect stamp duty according to their respective state stamp laws and prescribed norms.

Q10. What is the penalty for delay in payment of stamp duty on share Certificates ?

Ans. In Delhi, if a company fails to pay stamp duty on share certificates within the prescribed period of 30 days from the date of issuance, it is liable to face penalties under the Indian Stamp Act, 1899. ?Non-payment of stamp duty can result in penalties of up to ten times the amount of the unpaid or deficient stamp duty. Additionally, the Collector of Stamps or any authorized official has the authority to impound the relevant document if it appears that the instrument is not adequately stamped.

Penalty:

In case of Hearing Requirement: The company's authorised representative including professional must attend a hearing scheduled by the concerned authority to explain the reason for the delay and subject to power of the officer may waive off if any genuine grounds for the delay.

In case of Penalty Imposition: The authority “SDM” has the discretion to impose a penalty, which can be up to 10 times the amount of the unpaid stamp duty. The exact penalty depends on the duration of the delay and the justification provided by the company.