Firm Registration

info@firmregistration.in

+91 9001990955

Facebook-f Instagram Youtube Linkedin

Company Share Transfer

Transfer your shares starting from ₹ 1500/-
  • Execution of Share Transfer Deed
  • Stamp Duty on Share Transfer
  • Simple & Secure Online Process
  • Dedicated Professional
  • Expert CS Advice
  • Get the Shares Transferred in 7-10 days

Get Quote Instantly in a Minute

Introduction

Transfer of shares is a process in which the existing shares as issued by the Company are transferred from one person whether natural or artificial to another either by way of sale or gift. Shares are considered as a movable property, post reviewing the Articles of Association of the Company. As in case of Private limited companies the shares cannot be freely transferable while in case of Public Companies they can be transferred in the market easily.

In case of Public Companies or Listed Companies the shares are transferred electronically with the help of clearing house i.e. NSE and BSE. Further, the private limited companies who have not dematerialized shares, the shares are transferred in physical form only. Here we will discuss transfer of shares in a physical form.

Documents
Firm Registration

Documents Required

  • PAN Card of both transferor and transferee
  • Proof of Address of transferee
  • Certificate of Incorporation in case of Company
  • Common Seal of the Company; if any
  • Share Certificates of the shares to be transferred
  • Details of shares to be transferred
Process
Firm Registration

Process of Transfer of Shares of a Company

1. Complete the Application Form

You are requested to first fill the simple questionnaire provided by our expert team which will enable us to know the case of transfer of shares of the Company.
Direction Arrows
Step 01

2. Document Processing

At the second step you will be required to produce the documents in accordance with the questionnaire filled based upon which case will be dealt so that we can arrange them as per the requirement and for further processing.
Step 02

3. Drafting of Documents for Share Transfer

After arranging the documents we will begin with the drafting of Board Resolution (if not passed ) for Transfer of shares of the Company and to execute the share transfer deed in SH-4 (a prescribed format given under Companies Act, 2013 ) by the transferor and transferee and the stamp duty to be paid in accordance with Indian Stamp Act of the respective state.
Direction Arrows
Step 03

4. Conducting the Board Meeting and passing of Board Resolution for register of transfer of shares

Again a Board Meeting will be conducted to register the transfer of shares if the documentation with regard to the transfer of shares is in order.
Step 04

5. Entry in Share Certificate and Register of Members

After approval in the Board Meeting, entry for share transfer will be recorded on the Share Certificates and Register of Members.
Step 05
Faq's
Firm Registration

FAQ's On Share Transfer

List of persons involved in the process of transfer of shares?
  • Transferor
  • Transferee
  • Subscriber to the Memorandum of Association
  • Company itself
  • Legal Representative if any
Is there any stamp duty is required to be paid and who is liable to pay the same?

Yes, stamp duty is to be paid in accordance with Stamp Act for respective state which is born by the transferor or seller.

Is there any e-form is required to be filed to ROC?

No, as it the internal process which is recorded in minutes, and no further filing with ROC is required. Any such change is submitted while filing the annual return of the company in MGT-7.

What is the amount of penalty applicable for default in transfer of shares?

A Minimum fee of Rs. 25,000/- is charged which can be extended to Rs. 5,00,000/- and the officer in default can be penalized with minimum of Rs.10,000/- to maximum Rs. 1,00,000/-.

What is the time limit to execute proper instrument for transfer of shares?

The instrument shall be registered within 60 days from the date of execution.

How is the value of shares determined in case of transfer?

In case of Listed Company they are available on the stock exchange whereas in case of other companies it is generally determined on the basis of the average market value of shares at the time of transfer or agreed price between the transferor and the transferee of the shares, whichever is high.

What is the time limit for issuing share certificates to new member?

The Company shall register & issue the share certificate in the name of the transferee within one month of the receipt of the duly executed & stamped share transfer instrument along with the original certificate of the shares being transferred.

Do we need the approval of board for transfer of shares?

The share transfers if any shall be approved by passing a board resolution and shall be recorded in Register of Members electronically or physically.

Get Quote Instantly in a Minute