1. What is Share Certificate?
Share Certificate is the certificate issued by the company after the shareholders pay the agreed capital amount to the company.
2. When should the company issue and certify share certificate?
Every private company must submit various information to OCR within three months of registration, including a certificate of shareholding detail issued by the company. Within the specified period (shareholder promise to pay for the share), shareholders shall deposit the amount or pay the company for their shareholding. OCR then checks the documents and verifies the share certificates.
3. What should I do to get a share certificate?
To certify the share certificate-
- Issuance of share certificate passed by the board at the general meeting of the company
- Each shareholder shall deposit the amount equivalent to the total share price he/she agreed to buy while incorporating the company.
- A letter stating the payment of paid-up capital to be signed by the auditor.
- Submit the share certificates (two copies), bank statement of the company, a letter signed by the auditor to OCR.
- OCR checks all the documents and certifies the share certificate and gives one copy to the company.
4. Should a share certificate be issued every year?
No, but in case of a change in shareholder i.e. shareholding, new share certificate should be issued by the board resolution and certified.