SHARE TRANSFER IN PRIVATE LIMITED COMPANY

Are you looking forward to transferring the shares of your private or public company? Understand the entire process, time limits, and penalties for the transfer to ensure a hassle-free experience.

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Share Transfer Documentation
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Share Transfer Deed Preparation
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OUR PACKAGE
Start A Business
Share Transfer Documentation
Valuation
Share Transfer Deed Preparation
tax return
Stamp Duty on Share transfer
tax return
Board Resolution to affect the share transfer
tax return
Stamp duty on issues of new share certificate
tax return
Update in the registrar of members if company maintains statutory register
Documents Required
Start A Business
PAN card and Aadhar card of new partner
Valuation
One passport size photograph of the applicant
tax return
Share Transfer Deed in SH – 4
tax return
Proof of payment of Stamp Duty
tax return
Original Share Certificate that is being transferred

Share Transfer – Process, Time limits and Penalties

Are you looking forward to transferring the shares of your private or public company? Understand the entire process, time limits, and penalties for the transfer to ensure a hassle-free experience.

An Insight into Share Transfer

A vital aspect of any company is that the given shares are transferable. Debentures or shares of a company happen to be movable assets. They can be easily transferred in the manner as specified by the company –particularly the shares of some member of the given public company. On the other hand, a private firm is required to limit the transfer rights of the respective shares in the articles. The Companies Act 2013 and its provisions are known to deal with the transfer as well as transmission of securities. The process of transmission of the securities is referred to as the loss of title on the respective securities due to reasons like succession, death, bankruptcy, inheritance, and so more.

What is Share Transfer?

Step 1: Vetting of AOA & MOA
Share transfer is referred to as the voluntary handing of the respective rights and duties of the member from some shareholder who does not wish to be a member of the company anymore. The shareholder might transfer the shares to an individual who might be looking forward to becoming the member. Therefore, the shares in a company are easily transferable –just like any other movable asset in the company under specific articles of the company.

Procedure for Share Transfers

  • Obtaining of the transfer deed in the prescribed form –referred to as Form SH-4, as endorsed by some reputed authority.
  • In case of shares, getting the Articles of Association, trust deed related to debentures, and transfer deed for having the stamps.
  • Checking that the stamp affixed on the given transfer deed remains canceled during or before signing the deed.
  • Attaching relevant share or debenture allotment letter or certificate with the transfer deed and sending the same to the company.
  • Affixing the same value of stamp on the written application in case the signed transfer deed gets lost.

An Organization Featuring Share Capital

The company is not expected to register the security transfers or interest of the members of the organization without possessing the right transfer instrument within the span of 60 days from the execution date.

Application by Alone Transfer

The transfer is not going to be registered unless the organization gives application’s notice to both the transferee and the transferor within 2 weeks from the notice’s receipt. Company will be delivering certificates of the respective securities transferred, allotted, or transmitted in the following cases:
  • Subscribers to memorandum –within a span of 2 months from the incorporation date
  • Allotment of the shares –within 2 months from the allotment date
  • Receipt by the organization of the transfer or transmission instrument –within one month from the receipt date
  • Debenture Allotment –within 6 months from the allotment date