Company Share Transfer
With Firm Registration
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
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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.
Minimum
Firm Registration
Documents Required
- PAN Card of both transferor and transferee
- Common Seal of the Company; if any
- Proof of Address of transferee
- Share Certificates of the shares to be transferred
- Certificate of Incorporation in case of Company
- 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.
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.
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
Information
Firm Registration
Additional Information
Transfer of Shares
For initiating the process for transfer of shares of a Private Limited Company one must review the Articles of Association of the Company as a Private Limited Company is restricted to freely transfer its shares. This restriction could be:-
- Rights of pre-emption: Right of pre-emption means whenever the shareholder wishes to transfer all or some part of his/her shares then they must be first offered to the existing members of the company in accordance with the price determined by the Directors or the Auditor of the Company. The value of such shares can be decided based upon the formula / method mentioned in the Articles of Association. If the existing shareholders are not interested in buying then such shares can be freely offered to outsiders.
- Powers of Directors to refuse: In case any stringent provisions have been prescribed in the Articles of Association of the Company then the Directors may have the powers to refuse registration of transfer of shares.
SH-4 : Share Transfer Deed
The execution of share transfer is done through a share transfer deed SH-4 which has to be executed by the transferor and transferee by filling all the details of the company, no of shares transferred, value of shares, details of transferor and transferee and should be stamped as per the stamp duty levied in the respective state. The stamp duty has to be paid by the seller in this case. The executed deed has to be submitted within 2 months of the date of execution.
Share Transfer In case of Non Resident
For transferring the shares from resident to non-resident or vice versa a Form FC-TRS shall also be filed by the Indian Resident with the Reserve Bank of India within 60 days from the date of remittance or transfer whichever is earlier.
Faq's
Firm Registration
FAQ's On Share Transfer
- 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.
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/-.
The instrument shall be registered within 60 days from the date of execution.
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.
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.
The share transfers if any shall be approved by passing a board resolution and shall be recorded in Register of Members electronically or physically.