Authorised Capital Stamp Duty Calculator

When this applies

• You are incorporating and want the state stamp duty on the capital.
• You are comparing the cost of incorporating in different states.
• You are deciding on the authorised capital and its duty cost.
• You are increasing the authorised capital and want the duty on the increase.

INR 10,00,000 of authorised capital at 0.2%

1. 1Authorised capital INR 10,00,000. Rate 0.2%. Minimum duty nil.
2. 2Duty at rate = 10,00,000 x 0.2 / 100 = INR 2,000.
3. 3Minimum duty is nil, so the duty payable = INR 2,000.

Stamp duty of INR 2,000.

What this calculator does

Work out the state stamp duty on a company's authorised share capital, applying the rate and any minimum duty that applies.

How this is calculated

Stamp duty on authorised capital is a state charge, calculated as a percentage of the authorised capital, subject to a minimum in states that prescribe one. This calculator applies the rate to the capital and takes the higher of that figure and the minimum duty. Because the rate and the minimum are set by each state, both are inputs.

The formula

Duty = max(capital × rate ÷ 100, minimum duty)

Common mistakes to avoid

• Using another state's rate

  Stamp duty rates and minimums differ by state. A rate from one state is not valid in another.

• Ignoring the minimum duty

  Some states prescribe a minimum. On a small capital the minimum, not the percentage, is what is payable.

• Forgetting the duty on an increase

  Increasing the authorised capital later generally attracts further duty on the increase.

Frequently asked

What is stamp duty on authorised capital?

A state charge payable when a company is incorporated, calculated on the authorised share capital stated in its constitution.

How is it calculated?

As a percentage of the authorised capital, subject in some states to a minimum amount. This calculator applies the rate and takes the higher of the result and the minimum.

Does the rate vary by state?

Yes. Stamp duty is a state subject, and both the rate and the minimum differ from state to state.

Is it charged again if I increase the capital?

An increase in authorised capital generally attracts further stamp duty on the increase. Check your state's rules.

Is this the same as the MCA registration fee?

No. The MCA registration fee is a central charge; stamp duty is a state charge. Both apply, and both are based on the authorised capital.