Transfer of Shares
Shares of a private company are movable and can be transferred subject to the restrictions imposed by the AOA of the company or the Companies Act. These restrictions are to protect the shareholders’ rights. All involved stakeholders must sign and authorize the transfer, and can be done in one day. Shares of a public company are easily transferrable.
Our expert team can complete the transfer for you in a single day if all the stakeholders are available to sign the papers.
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Our professional team will obtain the necessary information and initiate the process
Before Commencing the Process
- Check out on the restrictions in your AOA
- Check with existing shareholders
- Sign an agreement and use Form SH-4 for filing with ROC
- Original share certificates of the shares to be transferred
- Stamp Duty certificate
- Share transfer agreement
- Forms duly signed by the relevant stakeholders
- ID and address proofs of both the parties
- Payment proof in the event of transfer, if any
The transferor writes a notice describing the need for transfer of shares and sends out an invitation to existing members to buy the shares
Once the share transfer and consideration is fixed, Form SH-4 must be filled by the prospect or the buyer. This is signed by both the parties, the seller and the buyer in the presence of a witness. Then, the seller hands over the share certificate and SH-4 to the buyer. Stamp duty must be paid by pasting the share transfer tickets on the form.
Records to be Updated
Once the transfer is completed and certified, the transferee requests the company to change the details in the records against those shares.
Fresh Share Certificate
Once the Board of Directors' approval is given, the share transfer register is updated with the details of the new members.