will soon be able to incorporate a company in India sitting anywhere in the world without having to face red tape. The government is all set to introduce a centralised electronic stamp duty payment and online vetting of charter of new companies, irrespective of the states where they are set up.
Doing away with the need for a physical interface between the entrepreneur and a government official will eliminate occasions for corruption too.
Now, physical presence at the registrar of companies is essential for stamp duty payment in the state of incorporation and vetting of the company’s charter. The Centre has already started talking to state governments to tackle legal issues related to amending the Stamp Act of states and administrative issues related to duty payment. Being a state subject, implementation of any decision related to stamp duty at the national level needs the concurrence of all state governments.
The move will not, however, lead to uniform stamp duty and the proposed online payment system will manage accounting for varying duty in different states. The system would generate electronic stamp papers, on which the entrepreneur has to file affidavits using digital signature. The existing online filing system only provides for filing statutory documents like annual reports but not for starting a new company.