The rates of Application Fees payable by companies and individuals to the Central Government for various applications made by them for approvals under the Companies Act, 1956 have been revised with effect from 6.7.1999. This revision has been done by notifying the Companies (Fees on Applications) Rules, 1999 in the Gazette of India Extra-ordinary dated 6.7.1999. These Rules supercede the earlier 1968-Rules, namely, the Companies (Fees on Applications), Rules, 1968. The details of the changes made in the fee structure are given below:

2. Applications made by companies to Central Government:

Companies have been paying fees to the Central Govts. on various applications made under the Companies Act in six different slabs (Rs.50, 100, 150, 200, 300 and 500) depending upon their Authorised Capital. The new slabs have been reduced to three (Rs.500, 1,000 and 2,000). Now companies have to pay Application Fees as under:

• Rs.500/- if the Authorised Share Capital is less than Rs.25 lakhs

• Rs.1,000/- if the Authorised Share Capital is Rs.25 lakhs or more but less than Rs.5 crores .

• Rs.2,000/- if the Authorised Share Capital of the company is Rs.5 crores or more .

3. Application Fee payable by Sec.25 companies:

Section 25 companies (i.e. those companies which do not have profit-earning as their motive) would now have to pay Rs.500/- for any application made by them. For issue of licence under Section 25, the fees are being increased from Rs.60/- to Rs.500/- Earlier the rate was Rs.60/-.

4. Application Fee for Foreign Companies:

The Application Fee payable by a foreign company (as defined under Sec.591) has been increased from Rs.200/- to Rs.1,000/-.

5. Application Fee payable by individuals for claims from companies under liquidation:

Similarly, the fees for claims from a company in liquidation have also been revised. Earlier, there were 5 slabs (Nil, Rs.30, Rs.60, Rs.150 and Rs.200). The slabs have now been reduced to three (Nil, Rs.200, Rs.300)

• Earlier only those whose claim did not exceed Rs.250 were exempt from paying the Application Fee to the Central Govt. under Sec.555 of the Companies Act. Now, those whose claim does not exceed Rs.5,000/- are exempt from such payments.

• Those whose claim exceeds Rs.5,000/- but does not exceed Rs.10,000/- have now to pay Rs.200/-.

• Those claims which exceed Rs.10,000/- will call for payment of Rs.300 as Application Fees.

6. Application Fee payable by individuals for Transfer of Shares:

There is however, no increase in the fees payable by investors for extension of time under Sec.108 (1D) of the Companies Act. The fees in these cases remain at Rs.50 if the face value of the shares involved in a transfer does not exceed Rs.5,000/-. In case the face value of the shares involved in a transfer exceeds Rs.5,000/-, the fees payable is Rs.100 (i.e. again here is no change).

7. All individuals and companies are requested kindly to note these revised rates which have come into effect from 6.7.1999.

8. A copy of the Notification has been placed at the Web Page of the Department of Company Affairs at the Internet Address http://www.nic.in/dca.