Stamp Duty for Private Limited Company
Stamp duty for a Private Limited Company is a mandatory government levy payable on incorporation documents, increase of authorised capital, and certain corporate filings. The amount of stamp duty varies depending on the state in which the company is registered, as stamp duty in India is governed by state legislation.
Whether you are incorporating a new company or increasing authorised capital through Form SH-7, understanding state-wise stamp duty rules is essential to ensure smooth ROC approval and avoid compliance delays.
Increasing authorised capital requires filing Form SH-7 with the Registrar of Companies, but many businesses overlook one crucial aspect — state-wise stamp duty on authorised capital increase. Stamp duty under SH-7 varies across Indian states and union territories, and incorrect calculation can result in delays, penalties, or rejection of ROC filings. This SH-7 Stamp Duty Calculator helps companies estimate stamp duty payable instantly based on the applicable state rules, making capital restructuring faster and fully compliant.
State Wise Stamp Duty Finder
What is Stamp Duty in a Private Limited Company?
Stamp duty is a legal tax payable on company documents such as:
• Memorandum of Association (MoA)
• Articles of Association (AoA)
• SPICe+ incorporation forms
• Form SH-7 (Increase of Authorised Capital)
• Capital clause amendments
It is collected at the time of filing with the Ministry of Corporate Affairs (MCA) and is automatically calculated based on the state selected in the registered office address.
When Is Stamp Duty Applicable for a Private Limited Company?
Stamp duty becomes applicable in the following situations:
1. During Incorporation
At the time of incorporating a Private Limited Company, stamp duty is payable on:
• MoA
• AoA
• SPICe+ (INC-32) forms
The rates differ state-wise and are often based on authorised share capital.
2. Increase in Authorised Share Capital (Form SH-7)
If a company increases its authorised capital, stamp duty must be paid on:
• Alteration of Capital Clause in MoA
• Form SH-7
The calculation varies by state and may be:
• Percentage-based (e.g., 0.15% or 0.5%)
• Slab-based
• Per ₹5 lakh or ₹10 lakh block
• Subject to minimum or maximum cap
This is one of the most commonly misunderstood compliance areas.
How is Stamp Duty Calculated?
Stamp duty calculation depends on:
• State of registered office
• Existing authorised capital
• Increased capital amount
• Applicable slab or percentage
• Maximum cap limit
For example:
• Delhi: Percentage-based with upper cap
• Maharashtra: Per ₹5 lakh block system
• Gujarat: 0.5% subject to maximum
• Karnataka: Per ₹10 lakh block
Each state applies different rules.
SH-7 Stamp Duty Calculator – All States (India)
Instantly calculate stamp duty payable on increase of authorised capital under Form SH-7 as per state rules.
What is Form SH-7?
Form SH-7 is filed under the Companies Act, 2013 when a company increases its authorised share capital. The form must be submitted to the MCA portal along with payment of applicable stamp duty as per the state in which the registered office of the company is situated.
Key situations where SH-7 is required:
• Increase in authorised share capital
• Sub-division or consolidation of share capital
• Conversion of shares
• Alteration of capital clause in Memorandum of Association
Since stamp duty is governed by state legislation, the amount payable differs significantly across India.
What is Authorised Share Capital?
Why SH-7 Stamp Duty Calculation Is Important
Incorrect stamp duty payment can result in:
• MCA resubmission notices
• Additional penalty charges
• Filing rejection
• Compliance delays
• Legal exposure during due diligence
Because each state has its own percentage rates, minimum limits, maximum caps, and slab-based structures, manual calculation often leads to mistakes. A structured SH-7 calculator simplifies this compliance process.
State-Wise Stamp Duty Variation in India
Stamp duty on increase of authorised capital may be calculated in different ways depending on the state:
• Percentage of capital increase (e.g., 0.15%)
• Slab-based structure
• Per ₹5 lakh or ₹10 lakh block
• Fixed amount for smaller capital
• Maximum cap limits (₹5 lakh / ₹25 lakh / ₹50 lakh etc.)
• Minimum threshold applicability
For example:
• Delhi applies percentage with upper cap
• Maharashtra uses per ₹5 lakh block system
• Gujarat applies 0.5% with maximum cap
• Karnataka uses per ₹10 lakh calculation
• Some states apply slab-based MoA structure
This calculator provides an informational estimate based on prevailing SH-7 rules.
Who Should Use This SH-7 Stamp Duty Calculator?
This tool is useful for:
• Private Limited Companies
• Public Limited Companies
• Startups planning funding
• Businesses raising capital
• ESOP structuring companies
• Corporate compliance professionals
• Chartered Accountants
• Company Secretaries
• Legal consultants
If you are increasing authorised capital, this calculator gives a preliminary estimate before filing.
