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Company Share Transfer

It's a pretty regular phenomenon that shares are either transferred internally or externally in a private limited company. Share transfer facility is the sole reason people prefer Private Limited companies in place of other options. Transferring shares here is quite an easy procedure in comparison to other forms of company. Here you can find all the Procedures for share transfer in a private limited company only after verifying the AOA of the Company by executing a share transfer deed.

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About This Plan

While changing the directors, we often tend to forget the most important thing, i.e., transfer the shares, which is the ownership right of the company. Also, in the case when another director takes over the company.
Created by potrace 1.15, written by Peter Selinger 2001-2017

Timeline

It Usually takes 1 to 2 working days (depends on MCA approval)

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Services Covered
Who Should Buy
How It's Done
Documents Required
Services Covered
Transferring of shares and payment of applicable stamp duty on the same
Who Should Buy

Every company in which there is a change in stake holding.

How It's Done
  • Purchase the plan
  • Upload documents on vault
  • Verifying your documents
  • Preparing the share certificates
  • Payment of Stamp Duty
  • Filing of Forms with ROC
  • Acknowledgement is generated
Documents Required

  1. Name, Contact Number and Email Id of DIN Holder.

  2. Directors Identification Number.

  3. Self Attested PAN, Aadhar & Passport size photo of DIN Holder.

  4. New Share holding pattern

  5. DSC of the Authorised Director. Buy here

Frequently Asked Questions:

What are the steps to transfer shares physically?

Delivery of possession is a method to transfer ownership of shares and stock., but there is a contractual relationship between the members and the company. share transfers to the transferee, assigns Contractual relationship which needs an instrument of transfer. Transferring a share involves a series of steps, first an agreement to sell (Share Transfer Deed), then executing a deed of transfer, and finally registering the transfer.

Transfer Deed

A share transfer deed is an instrument of transfer that both transferor and transferee must execute. Share transfer deed must be duly stamped and delivered to the company along with a certificate relating to shares transferred. The company cannot accept any instrument of transfer that is not in conformity with these provisions. With the help of Form "SH-4" Share transfer in physical mode is executed.


Acknowledgement

Companies often send acknowledgement of instrument to transferor who has lodged transfer with company before scrutinizing the documents. The notice of acknowledgement is usually in the form of a letter that holds a checklist for scrutiny of the transfer documents. Some companies follow the practice of issuing transfer receipt. Suppose the transfer application is made by the transferor alone and he has partly paid for the shares. In that case, the company must not register the transfer unless the company acknowledges the transferee. He does not have any objection to transferring the shares within two weeks from the receipt of the notice. There is no statutory obligation on company to give notice to the transferor when the transferee lodges the transfer documents.

Scrutiny

Upon receipt of all the transfer documents, we do scrutiny to ensure that all the documents are in place. We conduct scrutiny within 3 to 5 days from the receipt of the transfer documents. In case the documents are not acceptable, it's returned to the transferee. If the transferor's signature in the transfer instrument differs from the specimen signature on the company's record, then we return the document.

Registration

Registration of share transfer is a requirement for the transferee to obtain the status of a member of the company. A transfer is incomplete without registration of share transfer. A share transfer form is a document through which the transferee agrees to accept the shares. Share transfer becomes a legal contract with the company. Once the company approves and registers the transfer, this leads to the entry of the transferee’s name in the member's registry, and it qualifies his status as a member. The maintenance of the register of transfer is not a statutory requirement.

Approval

Every transfer of shares must be placed before the Board of Directors or committee for its approval. The registration takes place after approval. If everything is accepted after scrutiny, & right authority should approve it. The board must approve transfer of shares. Suppose articles of the company empower the board to delegate its power of approval of share transfer. In that case, it may delegate it to a committee that might not be the company’s directors.