Stamp Paper

Who is to procure Stamp Paper: 

Procurement is need-based. If you need the agreement on Stamp Paper, you will have to procure stamp paper of the value you wish to use.

Normal Requirement of Agreement: 

if you do NOT want to register anywhere, you DO NOT need to have any Stamp Paper. It depends upon the trust of the Owner and Tenant to have it on Stamp Paper or not.

Our recommendation

We trust you, so we do not want the Stamp Paper Rent Agreement. But if your choice is to have we will sign it. Therefore, the Rent Agreement for giving you the services of receiving your mail & notices and forwarding these to you do not need to be on stamp paper. The Virtual Office performs mainly this service. So will give you the Rent Agreement and NOC without the Stamp Paper.

Your choice in other cases:

If you wish, you can use Stamp Paper of Rs.50/- or Rs.100/- to maintain trust.

Registration of rent agreement

If you want to register with the registrar of Rent Agreements of the area. You will require the Stamp Paper of 2% value of annual rent. If the annual rental value comes to Rs.5,000/- Stamp Paper will be of Rs.100/-, If the rental value come to Rs.11,000/- the Stamp Paper will be of Rs.220/-. You will need to apply to the registrar and both the parties have to be present along with 2 witnesses along with their PAN and residence proof.

Registration with ROC

There are two (2) requirements of the Registrar of Companies to maintain the registered office of a company. The first (1st) requirement is to have a permanent place for a registered office on ownership or on a lease/rent basis. The second requirement is that every company has to maintain all the statutory registers of compliance and accounts at the registered office.

So, for the First requirement, you can have Virtual Office + Table Space (permanent or casual as may be required from time to time), to receive the mail & notices. For the second requirement, you require to pass a special resolution of the board of directors to keep your company registers and accounts at any other place [even at the residence of the Director].

Stamp Paper for Rent Agreement is to be of Rs.100/- under Article 35(i) of Delhi Govt. and for NOC of Rs.50/- under Article 4 of Delhi Govt required for Affidavit or Declaration or No objection Certificates. In total there have to be 2 stamp papers.

Registration with GST

There are two (2) requirements of the Commissioner of Goods & Service Tax to maintain the office of a company. The first (1st) requirement is to have a permanent place for a registered office on ownership or on a lease/rent basis for receipt of mail & notices. The second requirement is that every company has to maintain all the statutory registers of compliance and accounts at the registered office.

So, for the First requirement, you can have Virtual Office + Table Space (permanent or casual as may be required from time to time). For the second requirement, you require to pass a special resolution of the board of directors to keep your company registers and accounts at any other place [even at the residence of the Director]

Stamp Paper for Rent Agreement is to be of Rs.100/- under Article 35(i) of Delhi Govt. and for NOC of Rs.50/- under Article 4 of Delhi Govt required for Affidavit or Declaration or No objection Certificates. In total there have to be 2 stamp papers.

METHODOLOGY for your convenience

(1) You can procure both the stamp papers and send us for our signature OR send Rs.300/- to us to procure on your behalf.

(2) You can take one rent agreement of 11 months for Virtual Office and another rent agreement of 11 months for Space.  

IN NUTSHELL

There will be two (2) Rent Agreements and two (2) NOC for Registration of Company and for registration with GST

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Following is an example of Stamp Paper – example

Registration of Rent Agreement on Stamp Paper

If an agreement is to be registered, the agreement must be on stamp paper and stamp duty and registration fee need to be paid for it to the Registrar of Documents. The registrar of our area is located at Kapashera border of Delhi with Gurgaon. For instance, in Delhi, for a lease of up to five years, the stamp paper cost is 2% of the total average annual rent of a year. Add a flat fee of Rs.100 and please note that the security deposit is part of the rent agreement.

Who is to provide the cost of Stamp Paper

 As per Section 29 (a)No.62(c)(c) of the Indian Stamp Act, 1899 “in the absence of an agreement to the contrary, the expenses of providing proper stamp shall be borne – in the case of a lease or agreement to lease- by the lessee or intended lessee.”

Is the Rent Agreement on Stamp Paper registrable

As per Article 35(a)(i) of Stamp Duty in Delhi read with Article 15, the Stock Holding Corporation of India gives the Stamp Paper for compulsorily registrable documents – NCT of Delhi under its Article 35(i) Lease-Rent deed up to 1 year is to be 2% of the whole amount payable and under its Article 35(ii) Lease- up to 5 years is to be 2% of the Average Annual Rent Received/ Payable.